DAMS AN D
DEVELOPM ENT
A NEW FRAMEWORK
FOR DECISION-MAKING
THE REPORTOF THE WORLD COMMISSION ON DAMS
N ovem ber 2 0 0 0
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TH
AN
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Chair's Preface
Globalisation From Below
Professor Kader Asmal
Chair, World Commission on Dams
If politics is tlie art of tlie possible,
this document is a work of art. 1 1
redefines what is possible to all of us
for all of us at a time when water
pressure on governments has never
been more intense. Consider: on this
blue plan A, less than 2.5% of our
water is fresh, less than 33% of fresh
water is fluid, less than 1.7% of fluid
wat& runs in streams A nd we have
been stopping &/en these. We dammed
half our world's rivers at unprecedent-
ed rates of one per hour, and at un-
precedented scales of over 45 000
dams more than four storeys high.
Preface
A s one who authorised the next stage of one
of the largest dams in the Southern Hemi-
sphere I can argue that nations build large
dams for sound reasons. Dams store, use and
divert water for consumption, irrigation,
cooling, transportation, construction, mills,
power and recreation. Dams remove water
from the Ganges, A mazon, Danube, N lie or
C olumbia to sustain cities on their banks.
For parting - or imparting - the waters,
dams are our oldest tool. Yet are they our
only tool, or our best option?
TheWorld Commission on Damshas
undertaken a rigorous, independent and
inclusive global review, testing the waters to
help you answer that question with authori-
ty But just as water scarcity drove previous
construction of dams, competition for water
has underscored the C ommission's work. A s
we seek water we face an escalating crisis,
even of biblical proportions. In Ecclesiastes,
recall the passage:
0 ne generation passeth away,
and another generation cometh:
but tile earth abideth always. . .
A II rivers runneth to the sea,
yet the sea is not full. . .
The words are beautiful, haunting and,
suddenly, anachronistic. For they are not
true due to demands and dams during our
lives. Even degraded rivers seldom totally
run, but loiter in a chain of reservoirs. In
some years our mightiest rivers - A frica's
N lie, A sia's Yellow, A merica's Colorado,
A ustralia's M urray - do not reach the sea.
C ompounding that shortage, one in five
persons world-wide lacks access to safe
drinking water. Half the world lacks sanita-
tion; millions die from waterborne diseases.
Farmers compete for water with booming
but stressed cities. Towns drain aquifers that
took centuries to fill. Saltwater pollutes
groundwater miles from the sea. In C hina,
M exico and India water tables fall a metre a
year. I n a few decades, as we seek a fifth
more water for 3 billion new people, one in
three of us may struggle to drink or bathe.
Some see in our scarcity a harbinger of
troubled waters to come. They believe water
scarcity inevitably locks peoples, regions and
nations in a fierce, competitive struggle in
which restless millions race to the bottom in
fear and self-interest. A nd thus, they main-
tain, when rivers cross borders within or
between nations, water scarcity leads to
water stress which leads to water wars.
0 ur C ommission, and through it, this Final
Report, contradicts that sentiment. We see
water as an instrument, a catalyst for peace,
that brings us together, neither to build
dams nor tear them down but to carefully
develop resources for the long term.
Easier said than done? N ot necessarily T he
hard part here may lie in what can be 'said'
with intellectual honesty, vision and under-
standing. Surprisingly such a statement has
rarely been attempted. U nlike every other
aspect of our lives, large dams have long
escaped deep and clear and impartial
scrutiny into the process by which they
emerge and are valued. This lapse is espe-
cially glaring when set against much smaller
scale investments. We daily squeeze and
weigh fruits and vegetables to ensure we get
a fair return at the market. We rigorously
test-drive and analyse the performance of
motor cars before and after paying a few
thousand dollars for one. W e conduct
thorough due-diligence before purchase of
either house or business.
Yet this century we have collectively
bought, on average, one large dam per day,
and there have been precious few, if any
comprehensive, independent analyses as to
why dams came about, how dams perform
overtime, and whether we are getting a fair
return from our $2 trillion investment.
U ntil now.
Pioneer efforts are bound to be controver-
sial. A nd while the World Commission on
Dams is, by design, strictly advisory, make
no mistake. 0 ur genesis, work process and
implications of this Final Report are by
11
Dams and Development: A New Framework for Decision-Making
Preface
nature quite political. 0 ur mandate involves
the most precious element on earth, and
that, of course, involves power: who wields
it, how to share it, which ways the state may
better balance it.
Some may feel this Report makes water use
decisions even more difficult; by raising the
bar higher, as we do, a government must
exercise more energy and creativity to reach
a sustainable result. But in truth we make
those decisions easier; for we show clearly
which, how, where and why decisions can
either work well or fail to deliver.
For that reason I assert that we are much
more than a 'DamsCommission'. Wearea
C ommission to heal the deep and self-
inflicted wounds torn open wherever and
whenever far too few determine for far too
many how best to develop or use water and
energy resources. T hat is often the nature of
power, and the motivation of those who
question it. M ost recently governments,
industry and aid agencies have been chal-
lenged around the world for deciding the
destiny of millions without including the
poor, or even popular majorities of countries
they believe to be helping.
To confer legitimacy on such epochal
decisions, real development must be people-
centred, while respecting the role of the
state as mediating, and often representing,
their interests. In the following pages we do
not endorse globalisation as led from above
by a few men. We do endorse globalisation
as led from below by all, a new approach to
global water policy and development.
I n this approach, we must deal with the past
before we can chart a course for the future.
T he integrity of our process determines the
integrity of this product, which raises a key
point. I am proud to sign this work, and to
guide this project, but the document you
hold is not, as are some Commission Re-
ports, authored by its chair.
It comes instead from many authors who
were originally separated by the cultural and
philosophical dividesof the debate. That is
its true strength. Indeed, the assumption
that the number of people who write some-
thing is inversely related to how much it
says only goes so far. H undreds of eloquent
books and publications inform the dams and
development debate from one side or the
other. W ritten by single authors, they say
much but resolve little. TheWCD Final
Report is meaningful, and will be remem-
bered, not just for what it says, but for the
fact that several hundred diverse men and
women were directly involved in saying it. It
is sculpted by the expertise of members of
the C ommission, many of whom have
devoted their entire lives to engineering,
environmental, social and institutional
concerns of rivers and dams. A II of us were
sensitive to the needs of human develop-
ment as we listened to the aspirations, the
pain and the anguish of individual people.
Slow to speak, our C ommission was quick to
listen. Both sidesof the debate gave their
perspectives: from dam officials with an
obligation to govern to dam affected people
with stories to tell. By airing facts we
reached a rapprochement that began in
G land, Switzerland and continued, non-
stop, through hearings, consultations, case
studies, submissions and reviews covering
roughly one thousand large dams.
Through this process a shared understanding
and truth began to emerge, and with it the
thin thread with which to sew the stitches
of reconciliation. On this Commission, the
first stitches came, perhaps, as a woman who
risks her life opposing a large dam threads
the eye of the needle with an engineer who
built his career designing them. 0 r when
the leader of one the world's most powerful
technology companies engaged with the
leader of one of the world's proud but
dispossessed peoples. A s Seattle, Toronto,
Washington, London and Berlin came
unravelled by turbulent protests over
globalisation and development, we quietly
continued to apply stitch after stitch to sew
a stronger, more resilient and colourful
tapestry
The Report of the World Commission on Dams
iii
Preface
0 ur work is now over. W ith this document,
yours fi as begun. I wish it could be as simple
or catchy as popular manuals that offer
simplistic solutions for complex situations.
We recognise all those arguments, and
absorb them. But we push beyond Declara-
tions, which urge: 'Recognise human rights'
or 'Sustain natural resources'.
Telling me, a harried public official who
must answer to 48 million restless, hungry
and thirsty people, to 'Ensure development
is sustainable and humane' is like warning
me, 'Operate, but don't inflict new wounds'.
1 know that. W hat I don't know is how to
do it. To explain how to develop water in
ways that do not exhaust either my constitu-
ents or the resources we all depend on, we
must go beyond platitudes. 0 ur healing
must emerge not through anecdotes, but
through a complex, coherent and cohesive
argument that shows clearly where we have
been, what happened, why we're in conflict,
and how we can, with proper understanding,
heal ourselves.
That involves first shedding misconcep-
tions. Today's demands are too complex, our
technology too advanced, our constituency
too diverse, our options too numerous to
allow just one solution. For example,
imagine a typical dam.
Perhaps you see a smooth, parabolic, con-
crete structure. It seems to generate cheap
electricity through turbines at its base.
Engineers worship it, ecologists curse it,
indigenous tribes lose their culture to it.
N ative fisheries plunge after construction,
but floods decline as well. It pollutes neither
air nor water, provides water for nearby
towns, turns arid soils into rich farmland.
People and animals were relocated, but the
economic returns made doing so cost-effective.
T he dam embodies ambitions of statesmen,
but when politicians approach with their
ambitious plans, apprehensive peoples hold
signs that say 'Save our beloved river'.
That image was my own. It was what I
envisioned when I first took over the
M inistry of Water Affairs and Forestry under
N elson M andela. Five years of hands-on
work tempered that vision. C hairing this
Commission shattered it.
I nstead of my archetype I saw: dams built of
dirt and dams generating no electricity;
dams praised by ecologists and dams despised
by engineers; dams used for centuries by
indigenous peoples, dams boosting fisheries,
dams causing deadly floods; dams changing
river chemistry or increasing net greenhouse
gas emissions. I saw dam benefits by-pass
thirsty adjacent communities en route to the
city dams exhaust and erode rich soils
through water logging and salinity I saw
dams displace no one, dams create wetlands
and work, dams cost thrice their budget,
dams utterly abandoned and which had no
symbolic value. T hen I saw politicians
approach rivers with ambitious, bureaucratic
schemes, opposed by local activists shouting,
'Save our beloved dam'.
N 0 matter how much you know, or think
you know, about dams, you cannot read the
following report and keep your assumptions
intact. N 0 matter how sceptical, you will
come away changed, I think, for the better.
For the truth is no typical dams exist.
Yet the decisions that led to those dams
share a great deal. C lear patterns have
emerged, and all parties have met. We have
all reached agreement, established a healing
process that we hope will work, and set this
manual before you. Read it carefully -
though not in one sitting - with an eye to
where it may apply to your own specific
needs and agenda. It is rigorous, without
being rigid; it sees the State as an instru-
ment of development yet recognises the
necessity for popular participation; it is
dispassionate and advisory in tone, but
authoritative in its practical application.
It is said that if we do not master technolo-
gy technology will master us. In the past,
our unrestrained reliance upon large dam
technology weighed down upon us in all its
unexamined mystery. It stood, like solid.
iv
Dams and Development: A New Framework for Decision-Making
Preface
scarcity with confidence and assurance,
l<nowing that water is not for fighting over.
Water is for conserving. Water is for bath-
ing. Water isfor drinl<ing. Water isfor
sharing. Water, through this report, can be
our catalyst for peace.
Professor Kader Asmal,
Chair, World Commission on Dams
I would like to express on behalf of the C ommission our particular
appreciation to the following individualsThey have along with
many other friends, partners and contributors to theWCD process,
played a vital role in enabling the Commision to fulfil its mandate.
Bruce Babbitt, Sadi Baron, GerBergkamp, Richard Bissell, Robert
Bos, Peter Bosshard, Rodney Bridle, John Briscoe, Ian Curtis,
Shripad Dharmadhikary Bert Diphoorn, Osmar Vieira de Filho,
Luis Garcia, RaymundoJoseS. Garrido, Pham HongGiang, Liane
Greeff, George Green, Biksham Gujja, GeirY. Hermansen, Kaare
H oeg, A nn Jennervik, Olav Kjorven, Jean-Etienne Klimpt, Man-
fred Konukiewitz, M .L C hanaphun Kridakorn, M aritta Koch-
Weser, N icholas Lapham, Donal O'Leary, Patrick McCully David
M cDowel I, Joseph M ilewski, Reatile M ochebelele, N aoki M ori,
Takehiro N akamura, Peter van N iekerk, Raimundo N onato do C .
Silva, Tilak Ranaviraja, Frances Seymour, A ly Shady Jaswant
Singh, Jan Stromblad, Even Sund, Sardar M ohammed Tariq, A Nan
Taylor, M artin TerWoort, H imanshuThakkar, KlausTopfer, Dao
TrongTu, M ikej. Tumbare, M umtazTiirfan, M ichael Wiehen, James
W olfensohn, M ahmoud A bu Zeid, Tor Ziegler and Birgit Zimmerle.
divisive walls, between our left and right
banks, between the upstream and downstream
reaches of our rivers. T he C ommission's work
is complete. A nd now, perhaps, technology
can instead be kept under our united and
democratic control, owned by all of us. In
that way we can meet the coming water
The Report of the World Commission on Dams
V
Commissioners'
Foreword
The World C ommission on
D ams (WCD) was born out
of a small but significant lU CN ■
World Bank sponsored workshop in
G land, Switzerland in A pril 1997.
R epresentatives of diverse interests
came together to discuss the highly
controversial issues associated with
large dams To the surprise of
participants deep-seated differences
on the development benefits of large
dams did not prevent a consensus
emerging T hat consensus included
the proposal for a World C ommission
on D ams.
Foreword
Professor Kader Asmal
M mister of Education,
WCD Chair, Soutli Africa
M r Lakshmi Chand | am
Industrial Development
Services,
WCD Vice-Chair, India
Dr J udy Henderson
Oxfam International,
Australia
M r Goran Lindahl
ABB Ltd, Sweden
Prof Thayer Scudder
California Institute
of Technology, USA
A s C ommissi oners, we have been honoured
to serve on T he W C D for the past two and a
half years. Representing all sides of the
debate, we have worked as an autonomous
international team. 0 ur task was to con-
duct a rigorous, independent review of the
development effectiveness of large dams, to
assess alternatives and to propose practical
guidelines for future decision-making.
Since our work began in M ay 1998, we have
met on nine occasions. We have listened to
one anothers' different viewpoints in a
genuine spirit of openness and desire to find
a common understanding. A II of us have
found it a learning process, an enriching if
sometimes uncomfortable one. T his consen-
sus document is the result of our work, but it
would be unfair to the process to suggest
that we have emerged completely of one
mind. Individual differences still exist.
H owever, we all agree on the fundamental
principles and values that underpin this
report and on the guidelines we offer for the
way forward. In the final drafting of our
report we have included "A Comment" by
one C ommissioner who was unable to
attend the final meeting. It presents that
Commissioner's additional views on the
findings and recommendations we have
developed as a group of C ommissioners.
T he W C D is delivering its product in a
rapidly changing international environ-
ment. Debates proliferate about how to
conserve the world's precious resource base
while meeting the needs of growing popula-
tions hungry for economic progress. Terms
of investment, terms of trade, democratisa-
tion, the role of the state, the role of civil
society the obligation to protect threatened
ecosystems and preserve Planet Earth for
future generations: all are part of the wider
context. A ny policy on large infrastructure
projects - whether for dams, highways,
power stations, or other mega-installations -
has to be developed in this context.
A t the same time, alternative perspectives
on human rights and development are being
more clearly expressed. The Right to Devel-
opment, adopted by the U N G eneral
A ssembly in 1986 argues that 'development
is a comprehensive process aimed at the
constant improvement of the well-being of
the entire population... '. Recently, vocal
condemnation of the globalisation process,
pointing out that too many people are being
left behind those forging ahead, has added
support to this call for a better quality of life
for all of humanity, not just for some. The
U nited N ations Development Programme's
H uman Development Report 2000 has
given us a timely reminder that the rights to
security and basic freedoms, and to human
development are two sides of the same coin
and that when 'human rights and human
development advance together, they rein-
force one another'
As an international Commission, our
process has been unique in taking on board
a range of interests and opinions previously
held to be irreconcilable. We have exam-
ined evidence produced and opinions
expressed by a wide range of stakeholders:
government agencies, project affected
people and non-governmental organisations,
people's movements, the dam construction
industry, the export credit agencies and
private investors, and the international
development community Through this
work programme the Commission has added
a new body of knowledge to existing data-
bases and information on large dams, looking
at alternate ways of meeting irrigation, water
supply energy flood control requirements and
processes of development planning.
How did we achieve this? First by creating a
68 member Stakeholder Forum to act as a
sounding board and advisory group for the
WCD. The Forum has allowed us to reach
other partners in the debate and to sound
out those whose support for this report is
essential to its effective use.
Second, by drawing on the wider stakehold-
er community for experts and analysts in
developing the WCD Knowledge Base, and
for funds to support the Commission's work.
To date, 53 public, private and civil society
VIII
Dams and Development: A New Framework for Decision-Making
Foreword
organisations fiave pledged funds to the
W C D . T his independent funding model is
unique for international commissions.
Third, by undertaking a programme of four
Regional Consultations in different parts of
the world that drew submissions from an
even wider network of interested parties.
This provided a platform for all voices to be
heard. A Itogether, 1 400 individuals from 59
countries and from every type of stakeholder
group took part in these regional consulta-
tions. T he W C D also participated in two
hearings on large dams organised for its
benefit by N GOs in Southern Africa and
Europe. During its two-year lifetime the
Commission has received 947 submissions
from over 80 countries. We have listed all of
them in a central database accessible via the
Internet.
Fourth, by initiating eight independent in-
depth C ase Studies of specific large dam
projects and two country studies (India and
C hina). U sing a common methodology, the
case studies were conducted in a transparent
and participatory manner drawing inputs
from all stakeholders through an extensive
consultation process. We have used the
findings from all these studies and submis-
sions to inform a central product of the
Report: the G lobal Review of Large Dams.
Fifth, by undertaking 17 Thematic Reviews,
employing experts from a wide range of
disciplinary backgrounds, nationalities and
institutional bases. These reviews fall into
five thematic categories: Social Issues,
Environmental Issues, Economic and
Financial Issues, 0 ptionsA ssessment and
Institutional Issues. Once again, we con-
ducted these reviews in a participatory
manner, commissioning over 100 papers
with full peer review.
Lastly, by conducting a comprehensive
global survey of 125 dams, which we used to
'cross-check', the findings of the individual
studies. T he C ross-C heck Survey has
provided a basic set of data on trends to
complement the knowledge base.
We are fully aware that this body of data
cannot and should not be seen as the 'final
verdict' on the large dams story. T he W C D
has examined around 1 000 dams with
varying degrees of intensity This is a small
fraction of the more than 45 000 large dams
world-wide. There has been little systematic
collection of data about dam projects in the
past, and without baseline data we cannot
arrive at definite conclusions about certain
types of impacts. A I belt, theWCD report is
the first comprehensive global and inde-
pendent review of the essential aspects of
the performance of dams. I n many cases the
impacts are still being played out, and will
continue for many years to come. For this
reason it is important for the future manage-
ment of dams to have continued and sys-
tematic evaluation of their performance.
In carrying out our review we have not tried
to judge individual dams. We have found
that the unprecedented expansion in large
dam building over the past century, harness-
ing water for irrigation, domestic and
industrial consumption, electricity genera-
tion and flood control has clearly benefited
many people globally N onetheless, this
positive contribution of large dams to
development has been marred in many cases
by significant environmental and social
impacts which, when viewed from today's
values, are unacceptable.
We have sought to glean the lessons from
the past in order to make recommendations
for the future through a prism of equitable
and sustainable development. Development
based on five objectives: equity in resource
allocation and in the spread of benefits;
sustainability in the use of the world's
diminishing resource-base; openness and
participation in decision-making processes;
efficiency in the management of existing
infrastructural developments; and accountabil-
ity towards present and future generations.
I n today's rapidly globalising world the
W C D process has pioneered a new path for
global public policy making on issues of
equitable and sustainable development. This
M sj oji Carino
Tebtebba Foundation,
Philippines
M r Donald Blackmore
M urray-Darling Basin
Commission, Australia
Ms Medha Patlcar
Struggle to Save the
N armada River, India
Prof J ose Goldemberg
University of Sao
Paulo, Brazil
M s Deborah M oore
Environmental
Defense, USA
The Report of the World Commission on Dams
IX
Foreword
M r J an Veltrop
Honorary President,
ICOLD, USA
M r Achim Steiner
WCD Secretary-General,
Germany
Report is the test against wliicli tliat process
will be measured. We hope that the policy
framework and practical guidelines for its
implementation presented here will add
significant value to existing norms and form
a basis for best practice in water and energy
development. This is only a beginning, but
we hope it is a dynamic beginning that
others can take forward in the future. We
also hope that the lessons learnt from our
analysis of large dams will be seen as rele-
vant for other large infrastructural projects,
and that the framework of policy develop-
ment and implementation we have identi-
fied will see wider application.
Professor Kader Asmal
M r Lakshmi Chand J ain
DrJ udy Henderson
T he life of the World C ommission on
Dams ends with the publication of this
Report. Forthe Commissioners thishas
been an exciting, challenging and enrich-
ing process. It would not have been
possible without the tireless commitment
of an extraordinary team of professionals
in the Secretariat. But more, we are
indebted to hundreds of people around the
world who, mostly at their own expense,
have given us the bounty of their knowl-
edge, expertise and life's experiences
though discussion papers, submissions and
presentations adding light and life to this
report on large dams.
M r Donald BlacknTore
Ms Medha Patkar
Prof J ose Goldemberg
M r Goran Lindahl
Ms Deborah Moore
Prof Thayer Scudder
Ms J oji Cariiio
M r At him Steiner
X
Dams and Development: A New Framework for Decision-Making
Table of Contents
Chair's Preface i
C ommissioners' F oreword vii
Table of Contents xi
L ist of Tables xiii
List of Figures xiii
List of Boxes xiv
A cronyms and A bbreviations xvii
A cknowledgements xix
E xecutive Summary xxvii
Chapter 1: Water, Development and Large Dams 1
Water and Development 3
Development and Large Dams 8
Large Dams as Instruments of Development 11
Problems A ssociated with Large Dams 15
U nderstanding the Large Dams Debate 17
Fulfilling the W CD M andate - Process and M ethodology 28
PART I: THE WCD GLOBAL REVIEW OF LARGE DAMS 35
Chapter 2: Technical, Financial and Economic Performance 37
Structure and M ethodology 38
C onstruction C osts and Schedules 39
Irrigation Dams 42
H ydropower Dams 49
Water Supply Dams 56
Flood Control Dams 58
M ulti-Purpose Dams 62
Physical Sustainability Issues 63
Findings and Lessons 68
Table of Contents
Chapter 3: Ecosystems and Large Dams: Environmental
Performance 73
Terresterial Ecosystems and Biodiversity 75
G reenhouse G as Emissions 75
Downstream A quatic Ecosystems and Biodiversity 77
Floodplain Ecosystems 83
Fisheries 84
Ecosystem Enhancement 86
C umulative Impacts 88
A nticipating and Responding to Ecosystem Impacts 89
Findings and Lessons 92
Chapter 4: People and Large Dams: Social Performance 97
Socio-Economic Impacts through the Project and Planning Cycle 99
Displacement of People and Livelihoods 102
Indigenous Peoples 110
Downstream Livelihoods 112
Gender 114
C ultural H eritage 116
Human Health 118
Equity and the Distribution of Costs and Benefits 120
Findings and Lessons 129
Chapter 5: Options for Water and Energy Resources 135
Development
A griculture and Irrigation 137
Energy and Electricity 148
Water Supply 156
Integrated Flood M anagement 160
Findings and Lessons 163
Chapter 6: Decision-Making, Planning and Institutions 167
Decision-M aking and the Political Economy of Large Dams 169
Role of Foreign A ssistance 171
Planning and Evaluation 175
Compliance 185
Findings and Lessons 190
PART II: THE WAY FORWARD 195
Chapter 7: Enhancing Human Development: Rights, Risks
and Negotiated Outcomes 197
From G lobal Review to Future Practise 198
Sustainable H uman Development -AG lobal Framework 199
Trends and C hallenges in A pplying the N ew Development Framework 203
Rights and Risks- an ImprovedTool for Decision-M aking 206
N egotiated A greementson the Basis of Rights and Risks 208
Conclusion 210
xii
Dams and Development: A New Framework for Decision-Making
Table of Contents
Chapter 8: Strategic Priorities - A New Policy Frameworl<
for tlie Development of Water and Energy Resources 213
G aining Public A cceptance 215
C omprehensive 0 ptions A ssessment 221
A ddressing Existing Dams 225
Sustaining Rivers and Livelihoods 234
Recognising Entitlements and Sharing Benefits 240
Ensuring Compliance 244
Sharing Rivers for Peace, Development and Security 251
Chapter 9: Criteria and Guidelines - Applying the
Strategic Priorities 259
Five Key Decision Points: The WCD Criteria 262
A Special C ase: Dams in the Pipeline 276
A Set of G uidelinesfor G ood Practice 278
Chapter 10: Beyond the Commission- An Agenda
for Change 309
Strategic Entry Points for Follow-up 311
Taking the Initiative - Institutional Responses 313
C ontinuing the Dialogue 316
A Call to Action 319
List of Tables
1.1 Dams currently under construction 10
1.2 Estimated annual investment in dams in the 1990s 11
1.3 Population density of selected river basins 17
4.1 Illustration of the services and benefits generated by large dams in the WCD
Case Studies 121
4.2 Profile of groups adversely affected by large dams: illustrations from W C D
Case Studies 124
5.1 Complementary approaches to flood management 161
6.1 WCD CaseStudies: optionsassessment 178
9.1 Valuation methods 289
List of Figures
1.1 Annual fresh water withdrawals as a percentage of total resources withdrawn (1996) 6
1.2 A nnual fresh water withdrawals per capita average ( 1987-95) 6
1.3 Distribution of the world's water 7
1.4 Selected water-stressed countries 7
1.5 Regional distribution of large dams at the end of the 20'^ century 8
1.6 Construction of dams by decade (1900-2000) 9
1. 7 Dams constructed over ti me by regi on ( 1900- 2000) 9
1.8 D i stri buti on of exi sti ng I arge dams by reg on and purpose 12
1.9 A g-i cul tural I and i rri gated from dams 13
1. 10 Worl d map showi ng the negi onal I ocati on of the case studi eSi country studi es,
cross-check survey damSi regi onal consul tati onSi submi sa ons and Forum members 31
The Report of the World Commission on Dams xiii
Table of Contents
2.1 C ost overruns on large dams 39
2.2 Average cost overruns for large dams 40
2.3 Project schedule performance 42
2.4 A enlevement of command area 43
2.5 A ctual Irrigated area compared to planned targets over time 43
2.6 Economic performance of multilateral-financed Irrigation dams 47
2.7 Project averages for actual versus hydropower generation 50
2.8 A ctual versus planned hydropower generation over time 51
2.9 W C D case study hydropower performance: capacity and power generation 52
2.10 M ultllateral bank evaluation results on the economic performance for hydropower
dams 54
2.11 Project averages of actual versus planned bulk water supply delivery 57
2.12 A ctual versus planned bulk water supply delivery overtime 57
2.13 Trends In dam safety assessments 65
2.14 Lossof active storage due to sedimentation 65
2.15 Loss of active storage due to sedimentation by reach of river 65
2.16 Waterlogging and salinity 67
3.1 G ross greenhouse emisslonsfrom reservoirs 76
3.2 G reenhouse gas emisslonsfrom natural habitats 76
3.3 M odiflcatlon of annual regimes due to a hydropower dam, Colorado River at
Lee's Ferry U nited States 79
3.4 Fluctuations of dally streamflow regime due to hydropower peaking operations,
C olorado River at Lee's Ferry, September 79
3.5 Decline In species numbers but Increase In fisheries productivity, Tucurul (aSi b) 86
3.6 Fragmentation In 225 large river basins 87
3.7 A ntlclpated and unanticipated ecosystem impacts 89
5.1 Schematic of electricity options 150
6.1 Development assistance for large dams, 1950-1999 171
6.2 Trends in provisions for participation and information disclosure 176
6.3 Trends in the implementation of economic and financial analyses 186
6.4 Trends in the implementation of environmental and social assessments 187
7.1 T he W CD policy framework 202
7.2 From rights and risks to negotiated agreements: a framework for options assessment
and project planning 208
9.1 W C D C riteria and G uidelines strengthen other decision support instruments 260
9.2 Five key points in planning and project development 263
9.3 Preference matrix for ranking options 285
List of Boxes
1.1 N ew paradigm for water use 3
1.2 Types of large dams 11
1.3 C hanging physical attributes and impacts of large dams 15
1.4 C entral issues in the dams debate: past and present 21
2.1 Efficiency in the use of irrigation water 46
2.2 Economic and financial performance of the Columbia Basin Project 47
2.3 C ost recovery for the A slantas dam 48
xiv
Dams and Development: A New Framework for Decision-Making
Tahip nf rnnf-pntQ
2.4 0 ptimising operations with the aid of a computerised decision-support system 53
2.5 Financial and economic performance of hydropower at G rand C oulee dam 55
2.6 Economic performance and cost recovery of hydropower at Tucurui dam 56
2.7 Flood protection in Japan 59
2.8 From flood control to flood management in the U nited States 61
2.9 C ost recovery in a multi-purpose scheme: G rand C oulee and the C olumbia
Basin Project 62
2.10 Dam safety in the U nited States 64
3.1 M itigating and compensating for terrestrial impacts 75
3.2 Greenhouse gas emissions at Tucurui, Brazil 77
3.3 H ow one dam has affected two different species in opposite ways 78
3.4 M inimising impacts of changes in streamflow regime: environmental flow
requirements 81
3.5 M itigation measure: fish passes 82
3.6 Restoring ecosystem function through managed floods 84
3.7 C umulative impact of dams: the A ral Sea 88
3.8 Ecosystem restoration through decommissioning in the U nited States 92
4.1 Bringing electricity to thefavelas in Sao Paulo, Brazil 101
4.2 Economic, socio-cultural and health impacts of livelihood displacement 103
4.3 M issing numbers of affected people: Sardar Sarovar project, I ndia, and Pak M un dam,
Thailand 104
4.4 Economic value of downstream floodplains, H adejia-N guru, N igeria 113
4.5 The Aswan H igh dam: a milestone in the history of archaeology 117
4.6 M ercury and human health at Tucurui 119
4.7 Royalties to communities: a Brazilian law for hydropower benefit-sharing 127
5.1 Conjunctive management of salinity 139
5.2 C ultivation techniques can reduce irrigation water use 141
5.3 A local approach to integrated water management, Rajasthan, India 144
5.4 Rainwater harvesting for domestic and agricultural use in China 144
5.5 Wetland and flood plain agriculture 145
5.6 Rainwater harvesting is spreading to urban areas 158
5.7 Flood resilience 162
6.1 W CD CaseStudies: political decisionsto build largedams 170
6.2 W C D C ase Studies and Submissions: foreign involvement in dam projects 173
6.3 N ordic influence in the Pangani Falls Redevelopment Project, Tanzania 174
6.4 Co-operation in shared river basins 174
6.5 Even late participation leads to a consensus resettlement plan: Salto Caixas dam,
Brazil 177
6.6 Public participation and project acceptance: three scenarios from A ustria 177
6.7 Environmental Impact A nalysis (EIA ): too little, too late 183
6.8 Licensing processes and duration 185
6.9 A Negations of corruption 187
6.10 Export C redit A gencies: competing for business versus common standards 189
6.11 W C D Case Studies: a compliance report card 190
7.1 Shared values and institutional practices - the U N M illenium Report 199
7.2 H uman rights and human development 203
7.3 Voluntary risk takers and involuntary risk bearers 207
7.4 G ood governance and the U N M illenium Report 209
The Report of the World Commission on Dams
XV
Table of Contents
9.1 H ealth impact assessment 284
9.2 C ultural heritage impact assessment 285
9.3 Ghazi-Barotha, Palcistan 291
9.4 Design and cost of environmental flows- Pollan dam, Ireland 295
9.5 Benefits of improving fish passes 296
9.6 Financial assurances and the Environment Protection A gency, Victoria, A ustralia 304
9.7 S uri name Central N ature Reserve 305
9.8 M endoza Province, A rgentina 305
10.1 Priorities for strengthening the knowledge base 317
A Comment - Med ha Patkar 321
ANNEXES 323
I Bibliography 323
II Glossary 344
III W C D Work Programme - A pproach and M ethodology 349
IV Reports in the WCD Knowledge Base 359
V Dams, Water and Energy - A Statistical Profile 368
VI U nited N ations Declarations 383
VII M embers of the World Commission on Dams 394
VIII A Profile of the WCD Secretariat 397
INDEX 399
xvi
Dams and Development: A New Framework for Decision-Making
The Forum
C oming from 68 institutions in 36 coun-
tries, members of the Forum reflect the
diverse range of interests in the dams
debate. The Forum acts as a 'sounding
board' for the worl< of the C ommission, and
helps maintain two-way communication
with the various far-flung constituencies.
Affected People's G roups
CODESEN, Co-ordination for the Senegal
River Basin, Senegal
C OIC A , Federacion de Indigenasdel Estado
Bolivar, Venezuela
G rand C ouncil of the C ree, C anada
M A B, M ovimento dosAtingidos por
Barragens, Brazil
N BA , N armada Bachao A ndolan, India
Sungi Development Foundation, Pakistan
C ordillera People's A lliance, Philippines
Bilateral Agencies/Export Credit
G uarantee Agencies
BM Z, Federal M inistryfor Economic Co-
operation and Development, Germany
N 0 RA D , N orwegian A gency for
International Co-operation, Norway
JBIC,Japan Bank for International Co-
operation, Japan
SDC, Swiss A gency for Development and Co-
operation, Switzerland
Sida, Swedish International Development
A gency Sweden
U .S. Export/Import Bank, U SA
Government Agencies
U nited States Bureau of Reclamation, U SA
Forum members can help to build ownership
of C ommission work. T he W C D is also
conscious that reports in themselves have
little impact if they are not firmly rooted in
a process that enables all interest groups to
develop an understanding of and confidence
in the process itself. M embership of the
Forum however does not imply endorsement
of the C ommission's report and findings.
LHWP, Lesotho Highlands Water Project,
Lesotho
M inistry of Water Resources, China
N ational Water Commission, M exico
M inistry of M ahaweli Development, Sri Lanka
M inistry of Water Resources, India
International Associations
ICID, International Commission for Irrigation
and Drainage
ICOLD, International Commission on Large
Dams
IHA, International H ydropower A ssociation
I A I A , I nternational A ssociation for I mpact
A ssessments
M ultilateral Agencies
A DB, Asian Development Bank
AfDB, African Development Bank
FA 0 , U nited N ations Food and A griculture
0 rganisation
lA DB, Inter-A merican Development Bank
U N DP, U nited N ations Development
Programme
U N EP, U nited N ations Environment
Programme
WB, World Bank
Acknowledgements
Non-Governnnental Organisations
Berne Declaration, Switzerland
EN DA , Environmental Development A ction,
Senegal
H elp the Volga River, Russia
IRN, International Rivers N etwork, USA
ITDG , Intermediate Technology Development
G roup, U nited Kingdom
lU C N , The World Conservation U nion,
Switzerland
Sobrevivencia-Friends of the Earth, Paraguay
W W F, W orld W ide Fund for N ature,
Switzerland
DAW N , Development A Iternatives with
Women for a N ew Era, Fiji
T I, Transparency International, G ermany
W EED, World Ecology Environment and
Development, Germany
Swedish Society for N ature C onservation,
Sweden
Wetlands International, Japan
Private Sector Firms
Enron, U SA
H arza Engineering, U SA
Siemens, Germany
ABB, Switzerland
Saman Engineering Consultants, South Korea
Engevix, Brazil
Research Institutes/Resource Persons
C entro EU LA , C iudad U niversitaria, C hile
Tropica Environmental Consultants Ltd.,
Senegal
WRI, World Resources Institute, USA
Water Research Institute, Israel
W inrock International, N epal
Focus on the G lobal South, T hailand
ISPH , Institute of H ydroelectric Studies and
Design, Romania
IW M I, International Water M anagement
Institute, Sri Lanka
WorldWatch Institute, USA
Wuppertal Institute, Germany
River Basin Authorities
C onfederacion Hydrografica del Ebro, Spain
M ekong River C ommission, C ambodia
Volta River A uthority, G hana
Jordan Valley A uthority, Jordan
Utilities
Eletrobras, Brazil
Hydro-Quebec, Canada
N epal Electricity A uthority, N epal
M ini hi ydro Division, Philippines
Electricite de France, France
Partnerships and Co-operation
The Food and Transparency The United The Environmental Internationa
Agnculture International Nations M onitonng Group Commission on
Organisation Environment Large Dams
Program
The Worid
Archaeological
Congress
The International
Energy Agency
*
. NtTII UTE
The Worid Health
Organisation
«IAIA
nrarnsrinna
hternational Institute
for Sustainable
Development
lUCN
nternationa
Association
for Impact
Assessment
The Worid Bank
XX
Dams and Development: A New Framework for Decision-Making
Acknowledgements
Financial contributors
Financial support was received from 53
contributors including governments, interna-
tional agencies, the private sector, N G 0 s and
various foundations. A ccording to the
mandate of the C ommission, all funding
received by it was 'untied' - i.e. these funds
were provided with no conditions attached
to them.
MusAID
People's Republic of
China - M inistry of
Water Resources
r\IPIP
1)
VOITH SIEMENS
Germany
lUCN
Finlan
d - M inistry of
Foreign Affairs
Irelan
- M inistn/ of
Quebec
Foreign Affairs
WWF
DFID
UK Department for
International
Development
Sida
J apan - M inistry of
Foreign Affairs
Swedish International
Development Agency
H.h E Id
WELUm
MMILhBIIU-
Denmark - M inistry
of Foreign Affairs
(5)
C.S. Mott
Foundation
N etheriands -
M inistry of Foreign
Affairs
United N ations
Environment
Programme
Inter-Amencan
Develoment Bank
Swiss Agencyfor
Development and
Cooperation
ikkm
Site)
KfW
^ft£D}TAI]lSTALT
^UNITED NATIOKfS
RBF
w RLE y
THE
HITIIH
SNC'IAVAU?]
LOlEK
I LAMMEYER
I INTERtUTKINM.
^ /KManitoba
IHINOflPLAh A.S
Norway - M inistry of
Foreign Affairs
Asian Development
Bank
EDF
Electricite
die France
r.fmiF FT BELlMt
Goldman Environmental
Foundation
5KAN5KA
The Report of the World Commission on Dams
xxi
Acknowledgements
WCD Case Studies - Team Leaders, Team of Authors,
Additional Authors and General Acknowledgements
Grand Coulee Dam, Columbia
River Basin, USA
TL: Leonard Ortolano, KatherineKao C ushing
AA : N icoleT. Carter, Harza Engineering,
William Green, Carl Gotsch, Kris M ay, Tim
Newton, Sophie Pierre, Josh Smienk, M ichael
Soules, M arilyn Watkins GA: BC Hydro,
Bonneville Power A dministration. Bureau of
Reclamation, C anadian First N ations, C olumbia
Basin Trust, ColvilleTrust, SpokaneTribe,
U nited States A rmy Corps of Engineers
Tarbela Dam, Indus River Basin,
Pakistan
TL: A mir M uhammed Khan AA : A Itaf A bro,
Shahid A hmed, PervaizA mir, Afzal H aq,
M ehmooda S. Jilani, RiazA hmed Khan, Peter
John M eynell,Javed Saleem Qamar, Riaz
Hussain Qureshi, RiazNazirTararGA: M inistry
of W ater and Power, W ater and Power Develop-
ment A uthority M embers of the Pakistan
Network for Rivers, Dams and People, lUCN-
Pakistan Office, World Bank-Pakistan Office
Aslantas Dam, Ceyhan River
Basin, Turkey
TL: Refik (^olasan AA : 0 . Tiirker A Itan,
0 kan A rihan, Q igdem Baykal, A li aglar,
A hmet Eltekin, N adir Izgin, Riza Kanber,
Suhandan Karauz, Haluk Kasnakoglu, Birsen
Gokge, Zuhal G uler, M ete Kaan Kaynar, Suha
Satana, Bora Surmeli, Zeliha U naldi, Erdal
Sekeroglu, Tuluhan Yilmaz, RecepYurtal GA:
Department of State H ydraulic W orks (A nka-
ra, Adana and Karamamaras), General
Directorate of Rural Services, Water U sers
A ssoci ations of C eyhan A slantas Project, Dogal
H ayati Koruma Dernegi, M inistry of Environ-
ment and Provincial Directorate of Health,
Directorate of A griculture. Forestry and N ation-
al Parks, World Bank -Turkey Office
Kariba Dam, Zambezi River,
Zambia/Zimbabwe
T L: A lois H ungwe A A : JuliusC hileshe,
M OSes C himbari, Dennis C hiwele, Paulman
C hungu, A ndrew C onybeare, Ezekiel Jonath-
an, Ronald Lwamba, H illary M asundire,
Dominic M azvimavi, N gonidzaishe M oyo,
H erbert M udenda, Fanuel N angati, Daniel
N diela, Elias N yakunu, N orman Reynolds,
John Santa C lara, Bennet Siamwiza, Steven
Tembo G A : David Z. M azvidza, C hris
M agadza, Steve Rothert
Tucurui Dam, Tocantins River,
Brazil
T L: Emilio Lebre La Rovere, Francisco
Eduardo M endes AA: Bertha Becker, G ilber-
to Canali, Rosa Carmina Couto, Paulo Diniz,
lara Ferraz, Efrem Ferreira, Jose Alexandre
Fortes, M aria das G ragas da Silva, M arcia
Ismerio, A na Lacorte, Renato Leme Lopes,
A driana N eves Luna, Sandra M acedo, Rosa
A cevedo M arin, Oscar de M oraes Cordeiro
N etto, Sylvia H elena Padiiha, Lucio Flavio
Pinto, Eneas Salati, M aria N azareth da Silva,
Wanderli Pedro Tadei GA: Electronorte,
A gencia N acional de Energia Electrica,
C entro A groecologico de A ssessoria y
Educacion Popular, OsmarVieira Filho,
M arcos V. Freitas, Raimundo N onato do C .
Silva, Sadi Baron, H enri A cselrad, Philip
Fearnside, Birgit Zimmerle, Jean Remy D .
G uimaraes
Pak M un Dam, M un-M ekong
River Basin, Thailand
TA : Sakchai A mornsakchai, Philippe A nnez,
Sansanee C hoowaew , Songkram G rachang-
netara, Prasit Kunurat, Jaruwan N ippanon,
Roel Schouten, Pradit Sripapatrprasite,
Chayan Vaddhanaphuti, ChavalitVidthay-
anon, Suphat Vongvisessomjai, Ek Watana,
Wanpen Wirojanagud GA: A mmarSiamwalla,
C hainarong Sretthachau, Darayes M ehta,
Kitcha Polparsi, M . L. C hanaphun Kridakorn,
M ichai Veravaidhya, Prudhisan J umbala,
Sansern Wongcha-um, Vatana M eevasana,
Vipada A pinan, Zakir H ussain
Glomma and Laagen Basin,
Norway
T L: Jostein Skurdal A A : Oystein A as. Tor
A rnesen. Per C hristian B0e, A ge Brabrand,
xxii
Dams and Development: A New Framework for Decision-Making
Acknowledgements
Jon A me Eie, Bj0rn P. Kaltenborn, Svein Erik
H agen, Karine H ertzberg, Trygve
H esthagen, A me Linl0kken, Dan Lundquist,
Pal M ellquist, A sbj0rn M olle, Torbj0m
0 stdahl, Trond Taugb0l, Jens Kristian
Tingvold GA : A me Eriandsen 0yvind
Fjeldseth, G eir Y. H ermansen, T hrond Berge
Larsen, Kurt Ole Linn, Pal M ellquist
Orange River Pilot Study
T L : W C D Secretariat A A : A zghar
A delzadeh, A ndrew A inslie, Geoff A ntrobus,
N icola Bergh, Bryan Davies, ChrisdeWet,
Tony Emmett, M uzi M uziya, Kyra N audascher-
Jankowski, Barry N komo, M aartin van Veelen
GA : Thinus Basson, Fannie du Plessis,
M irriam Kibi, M ike M euller, G eraldine
Schoeman, Staff of Surplus Peoples' Project
in Cape Town, Peter van N iekerk, Theo van
Robbroek
Country Study: India
TA : Pranab Banerji, Ramaswamy R. Iyer, R.
Rangachari, N irmal Sengupta, Shekhar Singh
G A : Som Pal, Z. H asan. Raj Rajagopal, A . D.
M ohile, A . S. Desai, B. G . Verghese, K. R.
Datye, M . C . G upta, M . G opalakrishnan, N .
C . Saxena, Pradeep K. Deb, Sunderlal Bahu-
guna, P. S. Raghavan
Country Study: China
TA : John Boyle, Richard Fuggle, H abib
Khoury, Ismail Najjar, Sam Pillai, Bill Smith
Briefing Paper on Russia and
N IS countries
TA : Elena A . Barabanova, N ikolai I . Ko-
ronkevich. Law and Environment Eurasia
Partnership (Central A sia), Lilia K. M alik,
Vladimir Smakhtin, Irina S. Zaitseva
Thematic Reviews - Lead Writers and Contributing Writers
1.1 Social impact of large dams: equity and
distributional issues: LW: William
A dams C W : A drian A dams; H ugh
Brody; Dominique Egre; Carmen Ferra-
das; Pablo G utman; Lyia M ehta; Joseph
M ilewski; Bina Srinivasan; Lubiao Zhang
1 .2 D ams, indigenous people and vulnera-
ble ethnic minorities: LW: M arcus
ColchesterC W: JaquelineCarino;
Jaroslave Colajacomo; A ndrew C orbett;
G abungan; Luke H ertlein; M anisha
M arwaha; LyIa M ehta; A mrita Patward-
han; A nde Somby; M aria Stankovitch
1.3 Displacement, resettlement, rehabilita-
tion, reparation and development:
LW : Leopoldo Bartolome; C hris de W et;
H arsh M ander; Vijay N agaraj C W:
C hristine Danklmaier; Ravi Hemadri;
Jun Jing; Scott Robinson
1 1 . 1 D ams, ecosystem functions and envi-
ronmental restoration: LW: M ike
A creman; G er Bergkamp; Patrick D ugan;
Jeff M cN eely C W: A sheline A ppleton;
Edward Barbier; G arry Bernacsek;
M artin Birley; John Bizer; C ate Brown;
Kenneth Campbell; John Craig; N ick
Davidson; Simon Delany; Charles
DiLeva; Frank Farquharson; N icholas
H odgson; Donald Jackson; Jackie King;
Michel Larinier; Jeremy Lazenby; Gerd
M armulla; Don M cA Mister; M athew
M cC artney; Steve M iranda; John
M orton; Dianne M urray; M ary Seddon;
Leonard Sklar; David Smith; Caroline
Sullivan; Rebecca Tharme
II. 2 Dams and global change:
LW: N igel A rnell; M ike H ulme; Luiz
Pinguelli Rosa; M arco A urelio dos
Santos C W: A Ibert M umma
I I I. 1 Economic, financial and distributional
analysis: LW: A lec Penman; M ichelle
M anion; Bruce M cKenney; Robert
U nsworth C W: C olin G reen; Pablo
G utman; A nneli Lagman; A nil M ar-
kandya; David M ullins; Kyra N au-
dascher-Jankowski; Douglas Southgate
I I I . 2 I nternational trends in project financing:
LW: Per LjungC W: Lily Donge; C hris
H ead; M ichael Kelly; H ilary Sunman
IV. 1 Electricity supply and demand manage-
ment options: LW: M aritess Cabrera;
A nton Eberhard; M ichael Lazarus;
Thierry Lefevre; Donal O'Leary; Chella
Rajan C W: G lynn M orris; Roger Peters;
Bjom Svenson; Rona W ilkinson
IV. 2 Irrigation options: LW: K. Sanmuga-
nathan C W: Pablo A nguita Salas;
S. C har; Keith Frausto; A Ifred H euper-
The Report of the World Commission on Dams
xxiii
Acknowledgements
man; Khalid Hussain; ICRISAT; Hector
M aletta; Dieter Prinz; Yehuda Shevah;
A nupam Singh; Laurence Smith;
H imanshuThal<l<ar
IV. 3 Water supply options: LW: Colin Fenn;
David Sutherland C W: M ary Dickinson;
John Gould; Allan Lambert;Jon Lane;
G uy Preston; Philip Turner
IV. 4 Flood control and management options:
LW: Colin Green CW: LuisBerga;
Patrick H awker; M inoru Kuriki; Dennis
Parker; Sylvia Tunstall; Johannes van
Duivendijk; H erb W iebe
IV. 5 Operation, monitoring and decommis-
sioning of dams: LW: PederHjorth;
C harles H oward; Kuniyoshi Takeuchi
CW: K. Betts; Michael Falter; Enrique
Garcia; Peter Goodwin; Brian Haisman;
Joji Harada; V.Jauhari;ThomasRusso;
G eoffrey Simms; James Westcoat;
Rodney W hite
V. l Planning approaches: LW: David
N ichols; T heo Stewart; David von
H ippel C W: Daud Beg; C atherine
Fedorsky; M atthias Finger;
J . Karmacharya; M iguel N ucete; Don
M oore; G Irish Sant
V.2 Environmental and social assessment
for large dams: LW: Barry Sadler
CW: Frank Vanclay; lara Verocai
V.3 River basins - institutional frameworks
and management options: LW: Peter
M illington C W: Len A brams; Enrique
C astelan C respo; Fiona C urtin; Luis
Garcia; Raymundo Garrido; Ramaswamy
Iyer; Erik M ostert; Cecilia Tortajada;
A nthony Turton; A aron W olf
V.4 Regulation, compliance and implemen-
tation: LW: A ngela C ropper; M ark
Halle;John Scanlon CW: Daniel
Bradlow; Gabriel Eckstein; Balakrishnan
Rajagopal; Tom Rotherham; Lori U dall;
M ichael Wiehen
V.5 Participation, negotiation, and conflict
management: LW: Bruce Stedman
C W: Tisha G reyling; A nne Randmer;
Vanchai Vatanasapt; A rch Isabel Viana
Working Papers - Writers
Dams and H uman H ealth: M artin Birley,
Robert Bos, M 'barack Diop, W illiam Jobin,
P U nnikrishnan
D ams and C ultural H eritage M anagement:
Steven Brandt, Fekri Hassan
Contributors to the WCD Cross-Check Survey
Keizrul A bdullah, M .A . A brougui, Rocha
Afonso, K. A kapelwa, A ntonio A Itadill, S.C
A nand, M ikeA nane, Valdemar A ndrade. Carlo
A ngelucci, C indy A rmstrong, A lexander
A sarin, Leo A takpu, Paul Aylward, Riad Baouab,
G R Basson, M ona Bechai, Edigson Perez
Bedoya, H ans H elmut Bernhart, C arlos Bertag-
no, Isaac Bondet, Peter Bosshard, Rodney
Bridle, A delino Estevo Bucuane, Brian Davies,
Cheickna Seydi A . Diawara, Shripad Dhama-
dhikary, Foto Dhima, Bob Douthwaite, Tim
Dunne, G ary Ellis, Richmond Evans-A ppiah,
Daryl Fields, Renzo Franzin, A lejandro G arcia,
Alfonso Garcia, Luis Garcia, Refik Ghalleb,
Ben M arcus G illespie, H andan G iray M .
Gopalakrishnan, Liane Greet, Francis Grey,
Jose Ramon G uifarro, Ronald Valverde
G uillen, Brian H aisman, Phil H irsch, Ku H su,
Dan H ulea, A lois H ungwe, K.L. Karmachar-
ya, Shaheen Rati Khan, David Kleiner, Elena
Kolpakova, M ichael Kube, M inoru Kuriki,
H ee Seung Lee, Knut Leitner, M elissa Loei,
W illiam Loker, Eleyterio Luz, A nil M ar-
kandya, Isidro Lazaro M artin, A boubacry
M bodji, Patrick M cCully, Brad M cLane,
Roland M ejias, C hantho M ilattanapheng,
Joseph M ilewski, Jose Diaz M ora, A mir
M uhammed, Jorge Carreola Nava, Eden
N apitupulu, H umphrey 0 le N charo, Luz
N ereida, N guyen A nh M inh, ANN oorzad,
M agdelena N unezde Cordero, David Okali,
Elizabeth Olsen, Torbj0rn 0stdahl, F.C
0 weyegha-A funaduula, T homas Panella,
Richard L. Pflueger, Hermien Pieterse, Julio
Pineda, Jose Polanco, A mbriosio Ramos,
Silvia M aria Ramos, Bernard Reverchon,
Johan Rossouw, Paul Royet, Joseph Riickl,
David Scivier, Jose Roberto Serrano, Thomas
Siepelmeyer, Kua Kia Soong, Bjorn Svenson,
G ustavo Tamayo, H imanshu T hakkar, Suresh
KumarThapa, Dao TrongTu, Jan Tosnar,
Jaroslav U ngerman, M artin van Veelen, H .A .
W ickramaratna, Brayton Willis, Ralph Witte-
bolle, C husak W ittayapak, Patricia W outers
xxiv
Dams and Development: A New Framework for Decision-Making
Acknowledgements
Presenters at the WCD's Regional Consultations
South Asia
K B C hand, G iasuddin A hmed C houdhury, K R
Datye, Shripadh Dharmadhikary, A ly Ercelawn,
Drona G himire, Ramaswamy Iyer, S Karu-
naratne, A R Karunawathie, Shaheen Rafi
Khan,Tauhidul A nwar Khan, A shish Kothari,
Lakshman M ediwake, A listair M cKechnie,
D K M ishra, IswerRaj Onta, M G Padhye,
Bikash Pandey Tilak Ranaviraja, M S Reddy
Saleem Samad, G Irish Sant, S Selvarajah, P C
Senaratne, Sardar M uhammad Tarlq, H Imanshu
Thakkar, B G Verghese, D C Wljeratna,
Hemantha WIthenage
Latin America
A zizA b' Saber, Carlos Avogadro, Ismael Agullar
Barajas, SadI Baron, Cello Bermann, RIcardo
C anese, Jorge C appato, Jose Porflrlo Fontanelle
de C arvalho, M argarlta Rosa de C astro lllera,
Carlos Chen, Ivan Correa, Jorge Oscar Dan eh,
Luis A Iberto M achado Fortunato, Casslo VIottI,
A fonso H enrlques M oreira Santos, M arcos
A urello de Freltas, Philip Fearnslde, Fablo
Feldmann, A Itino Ventura Fllho, H ector
H uertas, M . Kudlavicz, Jaime M lllan, Jose
Rodrigues, H umberto M arengo, EuclldesPereIra
M acuxl, M Iguel N ucete, C ristlan 0 paso,
Bonarge Pacheco, Ellas DiazPena, Alan Poole,
G rethel A gullar Rojas, Teodoro Sanchez,
Salomon N ahmad SItton, Carlos Vainer
Africa and the Middle East
A drian A dams, Tareq A . A hmed, C ansen
A kkaya, Leo A takpu, M ohamed Lemlne 0 uld
Baba, H . El Badraoul, M ohammed N . BayoumI,
Kamau BobottI, G eoffrey C havula, M arwa
Daoudy Seydl A hmed DIawara, Sallf Dlop,
Stephanie Duvall, R. Evans-A pplah,Arlf
G amal, A lloune G assama, M unther J . H adda-
dln, Olivier H amerlynk, M ohammed Jellall,
E.A .K. KalltsI, Elisabeth Khaka, Jacqueline Kl-
Zerbo, 0 .M . Letsela, C I aire LImbwambwa, Bazak
Zakeyo Lungu, BhekanI M aphalala, Reatlle
M ochebelele, A nna M oepi, Frank M uramuzi,
M artin M usumba, M ohammed N abll, Takehiro
N akamura, Karim S N umayr, H assan M . A .
Osman, F.C. Oweyegha-Afunaduula, Levin
Ozgen, Guy Preston, Karen Ross, Mahammadou
Sacko, M otseao Senyane, N oxolo 0 live Sephu-
ma, A . Shalaby , David Smith, Robyn Stein,
David SyantamI Syankusule
East and South East Asia
Kelzrul A bdullah, Reiko A mano, Le 0 uy A n,
Vu HongA nh, VIpada A pinan, Michael
Bristol, LeThac Can, H arvey Demalne, H ans
Frelderlch, A rnaldo Tapao G apuz, Shalmall
G uttal, N guyen DInh H oa, Pham ThI M ong
H oa, Susannah H opklns Leisher, H IroshI
H orl, M Ichael H orowltz, Iran M Inh H uan,
Tomoo Inoue, Sung Kim, Joern Kristensen,
See-Jae Lee, N guyen Due Lien, A rthur H .
M Itchell, M asaru N ishlda, A lastair M . N orth,
Do H ong Phan, G ralnne Ryder, Shyama
Shepard, Kua Kla Soong, C halnarong
Sretthachau, Dao TrongTu, A Rusfandl
U sman, M Ikhall Wakll, Wayne C . W hite,
Lublao Zhang
The Report of the World Commission on Dams
XXV
Acronyms and
Abbreviations
A DB
A <;ian Dpyplonmpnt Rank
AfDB
A friran npyplonmpnt Rank
C BA
ro'^t-hpnpfit analv^i"?
V_UJL U^l 1 ^1 1 L UllUIViJIJ
C H lA
cultural heritage impact assessment
C H P
romhinpd heat and nowpr
V_ U 1 1 1 U 1 1 1 1 1 L UIIU IJWVW^I
DRD
D eclaration on the Riaht to
Development
DSM
dpmand-sidp mananpmpnt
\A IIUIIU JIU^ IIIUII UU^i 1 1 ^1 1 L
DSS
dpfision sunnort svstpm
EA
environmental assessment
ECA
export credit agency
EFA
pnvi ron mpntal flow asspssmpnt
^IIVIIUIIIII^IILUI IIUVH U JJI 1 1^1 1 L
EFR
environmental flow requirement
EIA
pn\/irnnmpnt"?il imnart" ?i<^<;pc;c;mpn1"
dlVIIL/IIIMdlLCII llll|JClk.L CI I I d I L
EIRR
economic internal rate of return
F n\/i rr\n m Qnf"al D rr\f"Qf~f"i r\n A nQnr\/
E 1 1 V 1 1 Ul 1 IMcl 1 Ldl rlULcLLIUII M ycllLy
FIRR
financial internal rate of return
FSC
Forestry Stewardship Council
GATT
G eneral A greement on Tariffs and
Trade
GDP
gross domestic product
GHG
greenhouse gas/es
HIA
health impact assessment
HLC
high level committee
lA
impact assessment
lADB
Inter-American Development
Bank
ICID
International Commission on
Irrigation and Drainage
ICJ
International C ourt of Justice
ICOLD
International Commission on
Large Dams
lEA
International Energy Agency
IFC
International Finance
C orporation
IFI
international finance institutions
IHA
International Hydropower
A ssociation
ILO
International Labour
0 rganization
IRN
International Rivers N etwork
IRP
independent review panels
ISO
International Organization for
Standardization
lUCN
World Conservation U nion
LCA
life cycle assessment
MCA
multi-criteria analysis
MIGA
multilateral investment guarantee
agency
MRDAP
mitigation, resettlement and
development action plan
MW
megawatts
NGO
non-governmental organisation
NO RAD
Norwegian Agency for
International Co-operation
O&M
operation and maintenance
OECD
0 rganisation for Economic
Co-operation and Development
OED
0 perations Evaluation Division
(of the World Bank)
PCB
polychlorinated biphenyls
PIC
prior and informed consent
PV
photovoltaic
R&D
research and development
SA
strategic impact assessment
SIA
social impact assessment
SIDA
Swedish International
Development A gency
SRI
socially responsible investing
UNDP
U nited N ations Development
Programme
USA ID
USA gency for 1 nternational
Development
WCD
World Commission on Dams
WRI
World Resources Institute
Executive
Summary
The global debate about large
dams is at once
overwhelmingly complex and
fundamentally simple It is complex
because the issues are not confined to
the design, construction and operation
of dams themselves but embrace the
range of social, environmental and
political choices on which the human
aspiration to development and
improved well-being depend D ams
fundamentally alter rivers and the use
of a natural resource, frequently
entailing a reallocation of benefits from
local riparian users to new groups of
beneficiaries at a regional or national
Executive Summary
level . A t the heart of the dams debate are
issues of equity, governance, justice and
power - issues that underlie the many
intractable problems faced by humanity.
T he dams debate is simple because behind
the array of facts and figures, of economic
statistics and engineering calculations, lie a
number of basic and easily understood
principles. If adhered to and routinely
applied, these principles would not only go a
long way towards responding to the contro-
versy surrounding dams, but would markedly
improve decision-making on water and
energy resources, achieving better outcomes.
In identifying these principles, the World
Commission on Dams(WCD) hasnot had
to look far; they are the same principles that
emerge from the global commitments to
human rights, development and sustainability.
Our report tells a multifaceted story. But we
draw from it some straightforward and
practical advice to guide future decisions on
water and energy resources development.
The report sets out to distil more than two
years of intense study, dialogue and reflec-
tion by the C ommission, the W C D Secre-
tariat, the W C D Stakeholders' Forum and
literally hundreds of individual experts and
affected people on every aspect of the dams
debate. It contains all the significant find-
ings that result from this work and expresses
everything that the C ommission believes is
important to communicate to governments,
the private sector, civil society actors and
affected peoples - in short, to the entire
spectrum of participants in the dams debate.
The evidence we present is compelling. We
feel confident that the material collected
and analysed by the C ommission provides
overwhelming support for the main messag-
es in the report.
We believe there can no longer be any
justifiable doubt about the following:
■ Dams have made an important and
significant contribution to human
development, and the benefits derived
from them have been considerable.
■ I n too many cases an unacceptable and
often unnecessary price has been paid to
secure those benefits, especially in social
and environmental terms, by people
displaced, by communities downstream, by
taxpayers and by the natural environment.
■ Lack of equity in the distribution of
benefits has called into question the
value of many dams in meeting water
and energy development needs when
compared with the alternatives.
■ By bringing to the table all those whose
rights are involved and who bear the
risks associated with different options for
water and energy resources development,
the conditions for a positive resolution of
competing interests and conflicts are
created.
■ Negotiating outcomes will greatly
improve the development effectiveness
of water and energy projects by eliminat-
ing unfavourable projects at an early
stage, and by offering as a choice only
those options that key stakeholders agree
represent the best ones to meet the needs
in question.
The direction we must take is clear It is to
breakthrough the traditional boundaries of
thinking and look at these issues from a
different perspective. Our recommendations
develop a rationale and framework that
responds to this critical need and offers
scope for progress that no single perspective
can offer on its own. It will ensure that
decision-making on water and energy
development:
■ reflects a comprehensive approach to
integrating social, environmental and
economic dimensions of development;
■ creates greater levels of transparency and
certainty for all involved; and
■ increases levels of confidence in the ability
of nations and communities to meet their
future water and energy needs.
T here are no shortcuts to equitable and
sustainable development. T he evidence of
success and failure we present in this report
provides the best rationale why the 'business
xxviii
Dams and Development: A New Framework for Decision-Making
Executive Summary
as usual' scenario is neitlier a feasible nor a
desirable option.
Water and Development -
The Changing Context
T he key decisions are not about dams as
such, but about options for water and energy
development. T hey relate directly to one of
the greatest challengesfacing the world in
this new century - the need to rethink the
management of freshwater resources. A
number of global initiatives and reports
have documented the dramatic impact of
human-induced water withdrawals from the
world's lakes, rivers and ground aquifers.
Total annual freshwater withdrawals today
are estimated at 3 800 cubic kilometres -
twice as much as just 50 years ago.
The unfolding scenario for water use in
many parts of the world is one of increasing
concern about access, equity and the re-
sponse to growing needs. This affects
relations:
■ within and between nations;
■ between rural and urban populations;
■ between upstream and downstream
interests;
■ between agricultural, industrial and
domestic sectors; and
■ between human needs and the require-
ments of a healthy environment.
The challenge is not to mobilise so as to
compete successfully, but to co-operate in
reconciling competing needs. It is to find
ways of sharing water resources equitably
and sustainably - ways that meet the needs
of all people as well as those of the environ-
ment and economic development. These
needs are all intertwined, and our challenge
is to resolve competing interests collectively.
A chieving equitable and sustainable solu-
tions will be to the ultimate benefit of all.
T he imperative to supply growing popula-
tions and economies with water in a context
of depleting groundwater resources, declin-
ing water quality and increasingly severe
limits to surface water extraction has
brought sustainable water resources manage-
ment to the top of the global development
agenda. A Ithough increasing competition
for water suggests an expanding scope for
conflict, it also provides an incentive for
new forms of co-operation and innovation.
Dire scenarios for water demand must not
overshadow the fact that development paths
that meet and manage the demand exist and
are available for us to choose. H istory
demonstrates that the path of co-operation
has more often been followed than the path
of conflict. T he same must be true for our
future.
During the 20* century, large dams emerged
as one of the most si gni f i cant and vi si bl e
tools for the management of v\0ter resources
The more than 45 000 1 arge dams around
the vjor\ d have pi ayed an i mportant rol e i n
hd pi ng commun i ti es and economi es harness
v\0ter resources for food production, energy
generation, flood control and domestic \jse.
C urrent esti mates suggest that some 30-
40% of i rri gated I and vjor\ dwi de now rel i es
on dams and that dams generate 19% of
v\orld electricity
From the 1930s to the 1970s the construc-
ti on of I arge dams became - i n the eyes of
many -^onymous with de/dopment and
economi c prog'ess V i ev\ed as s^/vrixA s of
modemisation and humanity's ability to
harness nature, dam construction accderat-
ed dramatically This trend peaked in the
1970s when on average two or three I arge
dams were commi ssi oned each day some-
where in the v\orld.
W hi I e the i mmedi ate benef i ts were wi dd y
bdie/ed sufficient to justify the enormous
investments made- total investment in
I arge dams worl dwi de i s esti mated at more
than $2 tri 1 1 ion - secondary and tertiary
benefitsv\erealso often dted. Thes indud-
ed food scurity considerations local
empi oyment and ski 1 1 s de/d opment, rural
dectrifi cation and the expansion of physical
and social i nf restructure such as roads and
The Report of the World Commission on Dams
xxix
Executive Summary
schools. The benefits were regarded as self-
evident, while the construction and opera-
tional coststended to be limited to econom-
ic and financial considerations that justified
dams as a highly competitive option.
A s experience accumulated and better
information on the performance and conse-
quences of dams became available, the full
cost of large dams began to emerge as a
serious public concern. Driven by informa-
tion on the impacts of dams on people, river
basins and ecosystems, as well as their
economic performance, opposition began to
grow. Debate and controversy initially
focused on specific dams and their local
impacts. G radually these locally driven
conflicts evolved into a global debate about
the costs and benefits of dams. G lobal
estimates of the magnitude of impacts
include some 40-80 million people displaced
by dams while 60% of the world's rivers
have been affected by dams and diversions.
The nature and magnitude of the impacts of
damson affected communities and on the
environment have now become established
as key issues in the debate.
TheWorld Commission on Dams was born
from this debate. Established in February
1998 through an unprecedented process of
dialogue and negotiation involving repre-
sentatives of the public, private and civil
society sectors, it began work in M ay of that
year under the C hairmanship of Professor
Kader Asmal, then South Africa'sM inister
of Water Affairs and Forestry and later the
M inister of Education. The Commission's 12
members were chosen to reflect regional
diversity, expertise and stakeholder perspec-
tives. T he W C D was created as an inde-
pendent body with each member serving in
an individual capacity and none represent-
ing an institution or a country.
T he C ommission's two objectives were:
■ to review the development effectiveness of
large dams and assess alternatives for water
resources and energy development; and
■ to develop internationally acceptable
criteria, guidelines and standards, where
appropriate, for the planning, design,
appraisal, construction, operation, moni-
toring and decommissioning of dams.
T he decision to proceed with a large dam,
the way the decision was made, the opinions
and perspectives that were heard are at the
heart of the current debate about dams. T his
same question of choice - of decision-
making- also lay at the heart of the Com-
mission's work. Our report is about improv-
ing the way such decisions are made.
The WCD Global Review of
Large Dams
A large part of the Commission's work
involved a broad and independent review of
the experience with large dams. T he result-
ing WCD Knowledge Base includes eight
detailed case studies of large dams, country
reviews for India and China, a briefing paper
for Russia and the N ewly Independent
States, a C ross-C heck Survey of 125 exist-
ing dams, 17 Thematic Review papers, as
well asthe results of public consultations
and more than 900 submissions made
available to the C ommission. T his provided
the basis for the assessment of the technical,
financial, economic, environmental and
social performance of large dams, and the
review of their alternatives. T he review
underlined the critical issues relating to
governance and compliance that have come
to be associated with large dams.
T he evaluation was based on the targets set
for large dams by their proponents - the
criteria that provided the basis for govern-
ment approval. In reviewing this experience
the C ommission has studied a broad spec-
trum of dams. Its analysis gave particular
attention to understanding the reasons why,
how and where dams did not achieve their
intended outcome or indeed produced
unanticipated outcomes that explain the
issues underlying the dams debate. Present-
ing this analysis does not overlook the
substantial benefits derived from dams but
rather raises the question of why some dams
achieve their goals while others fail.
XXX
Dams and Development: A New Framework for Decision-Making
Executive Summary
Performance of large dams
T he knowledge base indicates that shortfalls
in technical, financial and economic
performance have occurred and are com-
pounded by significant social and environ-
mental impacts, the costs of which are often
disproportionately borne by poor people,
indigenous peoples and other vulnerable
groups. G iven the large capital investment
in large dams, the Commission was dis-
turbed to find that substantive evaluations
of completed projects are few in number,
narrow in scope, poorly integrated across
impact categories and scales, and inade-
quately linked to decisions on operations.
In assessing the large dams reviewed by the
C ommission we found that:
■ Largedamsdisplay a high degree of
variability in delivering predicted water
and electricity services - and related
social benefits - with a considerable
portion falling short of physical and
economic targets, while others continue
generating benefits after 30 to 40 years.
■ Large dams have demonstrated a marked
tendency towards schedule delays and
significant cost overruns.
■ Large dams designed to deliver irrigation
services have typically fallen short of
physical targets, did not recover their
costs and have been less profitable in
economic terms than expected.
■ Large hydropower dams tend to perform
closer to, but still below, targets for
power generation, generally meet their
financial targets but demonstrate varia-
ble economic performance relative to
targets, with a number of notable under-
and over-performers.
■ Largedamsgenerally havea rangeof
extensive impacts on rivers, watersheds
and aquatic ecosystems - these impacts
are more negative than positive and, in
many cases, have led to irreversible loss
of species and ecosystems.
■ Efforts to date to counter the ecosystem
impacts of large dams have met with
limited success owing to the lack of
attention to anticipating and avoiding
impacts, the poor quality and uncertainty
of predictions, the difficulty of coping
with all impacts, and the only partial
implementation and success of mitiga-
tion measures.
■ Pervasive and systematic failure to assess
the range of potential negative impacts
and implement adequate mitigation,
resettlement and development pro-
grammes for the displaced, and the
failure to account for the consequences
of large dams for downstream livelihoods
have led to the impoverishment and
suffering of millions, giving rise to
growing opposition to dams by affected
communities worldwide.
■ Since the environmental and social costs
of large dams have been poorly account-
ed for in economic terms, the true
profitability of these schemes remains
elusive.
Perhaps of most significance is the fact that
social groups bearing the social and environ-
mental costs and risks of large dams, espe-
cially the poor, vulnerable and future
generations, are often not the same groups
that receive the water and electricity
services, nor the social and economic
benefits from these. A pplying a 'balance-
sheet' approach to assess the costs and
benefits of large dams, where large inequities
exist in the distribution of these costs and
benefits, is seen as unacceptable given
existing commitments to human rights and
sustainable development.
Options for water and
electricity services
Today, a wide range of options for delivering
water and electricity services exists, al-
though in particular situations the cost and
feasibility of these options will vary in the
face of constraints such as natural resource
endowments and site location. The Com-
mission found that:
■ M any of the non-dam options available
today - including demand-side manage-
ment, supply efficiency and new supply
options - can improve or expand water
The Report of the World Commission on Dams
xxxi
Executive Summary
and energy services and meet evolving
development needs in all segments of
society.
■ T here is considerable scope for improv-
ing performance of both dam projects
and other options.
■ Demand management, reducing con-
sumption, recycling and supply and end-
use efficiency measures all have signifi-
cant potential to reduce pressure on
water resources in all countries and
regions of the world.
■ A numberof supply-side options at all
scales (ranging from small, distributed
generation sources or localised water
collection and water- recovery systems to
regional-interconnection of power grids)
have emerged that - on their own or
collectively - can improve or expand the
delivery of water and energy services in a
timely, cost-effective and publicly
acceptable manner.
■ Decentralised, small-scale options (micro
hydro, home- scale solar electric systems,
wind and biomass systems) based on
local renewable sources offer an impor-
tant near-term, and possibly long-term,
potential particularly in rural areas far
away from centralised supply networks.
■ 0 bstacles to the adoption of these
options range from market barriers to
institutional, intellectual and financial
barriers. A range of incentives - some
hidden - that favour conventional
options limit the adoption rate of alter-
natives.
Decision-making, planning and
institutional arrangements
The decision to build a dam is influenced by
many variables beyond immediate technical
considerations. Asa development choice,
the selection of large dams often served as a
focal point for the interests and aspirations
of politicians, centralised government
agencies, international aid donors and the
dam-building industry, and did not provide
for a comprehensive evaluation of available
alternatives. Involvement from civil society
varied with the degree of debate and open-
ness to political discourse in a country.
H owever, the W C D G lobal Review docu-
ments a frequent failure to recognise affect-
ed people and empower them to participate
in the process. In some cases, the opportuni-
ty for corruption provided by dams as large-
scale infrastructure projects further distorted
decision-making.
0 nee a proposed dam project passed prelim-
inary technical and economic feasibility
tests and attracted interest from financing
agencies and political interests, the momen-
tum behind the project often prevailed over
other considerations. Project planning and
appraisal for large dams was confined
primarily to technical parameters and the
narrow application of economic cost-benefit
analyses. H istorically, social and environ-
mental impacts were left outside the assess-
ment framework and the role of impact
assessments in project selection remained
marginal, even into the 1990s.
C onflicts over dams have heightened in the
last two decades due largely to the social and
environmental impacts of dams that were
either disregarded in the planning processor
unanticipated. However, it also stems from
the failure by dam proponents and financing
agencies to fulfil commitments made,
observe statutory regulations and abide by
internal guidelines. W hereas far-reaching
improvements in policies, legal require-
ments and assessment procedures have
occurred in particular countries and institu-
tions, in the 1990s it appears that business-as-
usual too often prevailed. Further, past short-
comings and inequities remain unresolved,
and experience with appeals, dispute resolu-
tion and recourse mechanisms has been poor.
Core Values for Decision-
Making
A s the G lobal Review of dams makes clear,
improving development outcomes in the
future requires a substantially expanded
basis for deciding on proposed water and
energy development projects - a basis that
reflects a full knowledge and understanding
Dams and Development: A New Framework for Decision-Making
Executive Summary
of the benefits, impacts and risl<s of large
dam projects to all parties. It also requires
introducing new voices, perspectives and
criteria into decision-making, as well as
processes that will build consensus around
thedecisionsreached. Thiswill fundamen-
tally alter the way in which decisions are
made and, we are convinced, improve the
development effectiveness of future decisions.
T he C ommission grouped the core values
that informed its understanding of these
issues under five principal headings:
■ equity,
■ efficiency,
■ participatory decision-making,
■ sustainability, and
■ accountability.
These five are more than simply issues -
they are the values that run through the
entire report. They provide the essential
tests that must be applied to decisions
relating to water and energy development. If
the report advances these values significantly
we will emerge at our destination - improved
decision-making processes that deliver im-
proved outcomes for all stakeholders.
T he debate about dams is a debate about the
very meaning, purpose and pathways for
achieving development. This suggests that
decision-making on water and energy
management will align itself with the
emerging global commitment to sustainable
human development and on the equitable
distribution of costs and benefits. The
emergence of a globally accepted framework
of norms rests on the adoption of the
U niversal Declaration of H uman Rights in
1948 and related covenants and conven-
tions thereafter. These later resolutions
include the Declaration on the Right to
Development adopted by the UN General
A ssembly in 1986, and the Rio Principles
agreed to at the U N C onference on Envi-
ronment and Development in 1992. The
core values that inform the Commission's
shared understanding are aligned with this
consensus and rest on the fundamental
human rights accorded to all people by
virtue of their humanity.
Rights, risks and negotiated
outcomes
Reconciling competing needs and entitle-
ments is the single most important factor in
understanding the conflicts associated with
development projects and programmes -
particularly large-scale interventions such as
dams. T he approach developed by the
Commission of recognising rights and
assessing risks (particularly rights at risk) in
the planning and project cycles offers a
means to apply these core values to deci-
sion-making about water and energy re-
source management. C larifying the rights
context for a proposed project is an essential
step in identifying those legitimate claims
and entitlements that may be affected by
the project or its alternatives. It is also a
pre-condition for effective identification of
legitimate stakeholder groups that are
entitled to a formal role in the consultative
process, and eventually in negotiating
project-specific agreements relating, for
example, to benefit sharing, resettlement
and compensation.
The assessment of risk adds an important
dimension to understanding how, and to
what extent, a project may impact on
people's rights. I n the past, many groups
have not had an opportunity to participate
in decisions that imply major risks for their
lives and livelihoods, thus denying them a
stake in the development decision-making
process commensurate with their exposure
to risk. I ndeed, many have had risks imposed
on them involuntarily Risks must be identi-
fied and addressed explicitly Thiswill require
the notion of risk to be extended beyond
governments or developers to include both
those affected by a project and the environ-
ment as a public good. I nvoluntary risk bearers
must be engaged by risk takers in a transparent
process to negotiate equitable outcomes.
A n approach based on the recognition of
rights and assessment of risks can lay the
basis for greatly improved and significantly
The Report of the World Commission on Dams
xxxiii
Executive Summary
more legitimate decision-mal<ing on water
and energy resource development. It offers
an effective way to determine who has a
legitimate place at the negotiation table and
what issues need to be included on the
agenda. 0 nly decision-making processes
based on the pursuit of negotiated outcomes,
conducted in an open and transparent
manner and inclusive of all legitimate actors
involved in the issue are likely to resolve
the complex issues surrounding water, dams
and development.
Recommendations for a
New Policy Frameworl<
Researching and analysing the history of
water resources management, the emergence
of large dams, their impacts and perform-
ance, and the resultant dams debate led the
C ommission to view the controversy sur-
rounding dams within a broader normative
framework. This framework, within which
the dams debate clearly resides, builds upon
international recognition of human rights,
the right to development and the right to a
healthy environment.
W ithin this framework the C ommission has
developed seven strategic priorities and
related policy principles. It has translated
these priorities and principles into a set of
corresponding criteria and guidelines for key
decision points in the planning and project
cycles.
Together, they provide guidance on translat-
ing this framework into practice. They help
us move from a traditional, top-down,
technology-focused approach to advocate
significant innovations in assessing options,
managing existing dams - including process-
es for assessi n g reparati o n s an d en v i ro n men -
tal restoration, gaining public acceptance
and negotiating and sharing benefits.
The seven strategic priorities each supported
by a set of policy principles, provide a
principled and practical way forward for
decision-making. Presented here as expres-
sions of an achieved outcome, they summa-
rise key principles and actions that the
Commission proposes all actors should
adopt and implement.
1. Gaining Public Acceptance
Public acceptance of key decisions is essen-
tial for equitable and sustainable water and
energy resources development. A cceptance
emerges from recognising rights, addressing
risks, and safeguarding the entitlements of
all groups of affected people, particularly
indigenous and tribal peoples, women and
other vulnerable groups. Decision making
processes and mechanisms are used that
enable informed participation by all groups
of people, and result in the demonstrable
acceptance of key decisions. W here projects
affect indigenous and tribal peoples, such
processes are guided by their free, prior and
informed consent.
2. Comprehensive Options
Assessment
A Iternatives to dams do often exist. To
explore these alternatives, needs for water,
food and energy are assessed and objectives
clearly defined. The appropriate develop-
ment response is identified from a range of
possible options. The selection is based on a
comprehensive and participatory assessment
of the full range of policy, institutional and
technical options. In the assessment process
social and environmental aspects have the
same significance as economic and financial
factors. T he options assessment process
continues through all stages of planning,
project development and operations.
3. Addressing Existing Dams
0 pportunities exist to optimise benefits
from many existing dams, address outstand-
ing social issues and strengthen environ-
mental mitigation and restoration measures.
Dams and the context in which they oper-
ate are not seen as static over time. Benefits
and impacts may be transformed by changes
in water use priorities, physical and land use
changes in the river basin, technological
developments, and changes in public policy
expressed in environment, safety, economic
and technical regulations. M anagement and
operation practices must adapt continuously to
xxxiv
Dams and Development: A New Framework for Decision-Making
Executive Summary
changing circumstances over the project's life
and must address outstanding social issues
4. Sustaining Rivers and Livelihoods
Rivers, watersheds and aquatic ecosystems
are the biological engines of the planet.
T hey are the basis for life and the liveli-
hoods of local communities. Dams transform
landscapes and create risks of irreversible
impacts. Understanding, protecting and
restoring ecosystems at river basin level is
essential to foster equitable human develop-
ment and the welfare of all species. 0 ptions
assessment and decision-making around
river development prioritises the avoidance
of impacts, followed by the minimisation
and mitigation of harm to the health and
integrity of the river system. Avoiding
impacts through good site selection and
project design is a priority. Releasing tailor-
made environmental flows can help main-
tain downstream ecosystems and the com-
munities that depend on them.
5. Recognising Entitlements and
Sharing Benefits
Joint negotiations with adversely affected
people result in mutually agreed and legally
enforceable mitigation and development
provisions. T hese recognise entitlements
that improve livelihoods and quality of life,
and affected people are beneficiaries of the
project. Successful mitigation, resettlement
and development are fundamental commit-
ments and responsibilities of the State and
the developer. They bear the onus to satisfy
all affected people that moving from their
current context and resources will improve
their livelihoods. A ccountability of respon-
sible parties to agreed mitigation, resettle-
ment and development provisions is ensured
through legal means, such as contracts, and
through accessible legal recourse at the
national and international level.
6. Ensuring Compliance
Ensuring public trust and confidence re-
quires that the governments, developers,
regulators and operators meet all commit-
ments made for the planning, implementa-
tion and operation of dams. C ompliance
with applicable regulations, criteria and
guidelines, and project-specific negotiated
agreements is secured at all critical stages in
project planning and implementation. A set
of mutually reinforcing incentives and
mechanisms is required for social, environ-
mental and technical measures. These
should involve an appropriate mix of
regulatory and non-regulatory measures,
incorporating incentives and sanctions.
Regulatory and compliance frameworks use
incentives and sanctions to ensure effective-
ness where flexibility is needed to accommo-
date changing circumstances.
7. Sharing Rivers for Peace,
Development and Security
Storage and diversion of water on trans-
boundary rivers has been a source of consid-
erable tension between countries and within
countries. A s specific interventions for
diverting water, dams require constructive
co-operation. Consequently, the use and
management of resources increasingly
becomes the subject of agreement between
States to promote mutual self-interest for
regional co-operation and peaceful collabo-
ration. This leads to a shift in focus from the
narrow approach of allocating a finite
resource to the sharing of rivers and their
associated benefits in which States are
innovative in defining the scope of issues for
discussion. External financing agencies
support the principles of good faith negotia-
tions between riparian States.
If we are to achieve equitable and sustaina-
ble outcomes, free of the divisive conflicts of
the past, future decision-making about water
and energy resource projects will need to
reflect and integrate these strategic priorities
and their associated policy principles in the
planning and project cycles.
From Policy to Practice -
Tlie Planning and Project
Cycle
T he C ommission's recommendations can
best be implemented by focusing on the key
stages in decision-making on projects that
influence the final outcome and where
The Report of the World Commission on Dams
XXXV
Executive Summary
compliance with regulatory requirements
can be verified. A mong the multitude of
decisions to be taken, the Commission has
identified five key decision points. The first
two relate to water and energy planning,
leading to decisions on a preferred develop-
ment plan:
■ N eeds assessment: validating the needs
for water and energy services; and
■ Selecting alternatives: identifying the
preferred development plan from among
the full range of options.
W here a dam emerges from this process as a
preferred development alternative, three
further critical decision points occur:
■ Project preparation: verifying that
agreements are in place before tender of
the construction contract;
■ Project implementation: confirming
compliance before commissioning; and
■ Project operation: adapting to changing
contexts.
Social, environmental, governance and
compliance aspects have been undervalued
in decision-making in the past. It is here
that the Commission has developed criteria
and guidelines to innovate and improve on
the body of knowledge on good practices
and add value to guidelines already in
common use. Seen in conjunction with
existing decision-support instruments, the
Commission's criteria and guidelines provide
a new direction for appropriate and sustaina-
ble development.
Bringing about thischange will require:
■ planners to identify stakeholders through
a process that recognises rights and
assesses risks;
■ States to invest more at an earlier stage
to screen out inappropriate projects and
facilitate integration across sectors
within the context of the river basin;
■ consultants and agencies to ensure
outcomes from feasibility studies are
socially and environmentally acceptable;
■ the promotion of open and meaningful
participation at all stages of planning
and implementation, leading to negotiat-
ed outcomes;
■ developers to accept accountability
through contractual commitments for
effectively mitigating social and environ-
mental impacts;
■ improving compliance through inde-
pendent review; and
■ dam owners to apply lessons learned from
past experiences through regular moni-
toring and adapting to changing needs
and contexts.
T he C ommission offers its criteria and
guidelines to help governments, developers
and owners meet emerging societal expecta-
tions when faced with the complex issues
associated with dam projects. A dopting this
framework will allow states to take informed
and appropriate decisions, thereby raising
the level of public acceptance and improv-
ing development outcomes.
Beyond the Commission -
An Agenda for Change
T he C ommission's report identifies the key
elements of the debate on water and energy
resources management and the role of dams
in this debate. It summarises the lessons
learned from our G lobal Review of experi-
ence with large dams. It elaborates the
development framework within which the
controversies and underlying issues can be
understood and addressed and proposes a
decision-making process anchored in a
rights-and-risks approach and based on
negotiated outcomes. It offers a set of
strategic priorities, principles, criteria and
guidelines to address the issues around
existing dams and to use in exploring new
water and energy development options.
The report is not intended as a blueprint.
W e recommend that it be used as the
starting point for discussions, debates,
internal reviews and reassessments of what
xxxvi
Dams and Development: A New Framework for Decision-Making
Executive Summary
may be established procedures and for an
assessment of how these can evolve to
address a changed reality. In looking at the
future, the Commission proposes a number
of entry points to help organisations identify
immediate actions they might take in
response to the Commission's report.
Specific proposals are included for:
■ national governments and line minis-
tries;
■ civil society organisations;
■ the private sector;
■ bilateral aid agencies and multilateral
development banks;
■ export credit agencies;
■ inter-governmental organisations;
■ professional associations; and
■ academic and research bodies.
Engaging through these entry points will
initiate permanent changes to advance the
principles, criteria and guidelines we set out.
T he trust required to enable the different
actors to work together must still be consoli-
dated. Early and resolute action to address
issues arising from the past will go a long
way towards building that trust in the
future. So, too, will an assurance to coun-
tries still at an early stage of economic
development that the dams option will not
be foreclosed before they have had a chance
to examine their water and energy develop-
ment choices within the context of their
development process.
T he experience of the C ommission demon-
strates that common ground can be found
without compromising individual values or
losing a sense of purpose. But it also demon-
strates that all concerned parties must stay
together if the issues surrounding water and
energy resources development are to be
resolved. It is a process with multiple heirs
and no clear arbiter. We must move forward
together or we will fail. T he C ommission
was given an exceptional opportunity and it
has delivered a result reflecting our collec-
tive learning process and understanding. If
our report does not win widespread support
among participants in the dams debate, it is
unlikely that there will be another such
opportunity for a long time.
We believe that our report is a milestone in
the evolution of dams as a development
option. We have:
■ conducted the first comprehensive global
and independent review of the perform-
ance of essential aspects of dams and
their contribution to development. We
have done this through an inclusive
process that has brought all significant
players into the debate;
■ shifted the centre of gravity in the dams
debate to one focused on investing in
options assessment, evaluating opportu-
nities to improve performance and
address legacies of existing dams, and
achieving an equitable sharing of bene-
fits in sustainable water resources devel-
opment; and
■ demonstrated that the future for water
and energy resources development lies
with participatory decision-making,
using a rights-and-risks approach that
will raise the importance of the social
and environmental dimensions of dams
to a level once reserved for the economic
dimension.
We have told our story. What happens next
is up to you.
The Report of the World Commission on Dams
xxxvii
Chapter 1:
Water, Development and
Large Dams
Over 45 000 times in tlielast
century, people took f/ie
decision to build a dam. D ams were
built to provide water for irrigated
agriculture domestic or industrial use,
to generate hydropower or help control
floods B ut dams also altered and
diverted river flows affecting existing
rights and access to water, and result-
ing in significant impacts on livelihoods
and the environment. Decisions to
build dams are being contested increase
ingly as human knowledge and experi-
ence expand, as we develop new
technologies, and as decision-making
becomes more open, inclusive and
transparent
Chapter 1
The World Commission on
Dams considers that the end
of any dam project must be
the sustainable improvement
of human welfare.
A t the heart of the current
debate on dams is the way
choices are made, and the
different opinions and
perspectives that are ex-
pressed - or denied expres-
sion - in the process. The
same question of decision-
making is at the centre of
the Commission's area of
concern.
D ams are a means to an end,
not an end in themselves.
W hat is that end? H ow
central are the challenges
that large dams set out to
meet?A nd how well can
dams meet them?
TheWorld Commission on
D ams considers that the end of any dam
project must be the sustainable improve-
ment of human welfare. T his means a
significant advance of human development
on a basis that is economically viable,
socially equitable, and environmentally
sustainable. If a large dam isthe best way to
achieve this goal it deserves our support.
W here other options offer better solutions
we should favour them over large dams.
Thus the debate around
dams challenges our view of
how we develop and manage
our water resources.
Water has attracted the
attention of political leaders
at the highest level and has
triggered a series of strategic global initia-
tives such as the World Commission on
Water. ^ Themcst pov\atul players in
de/dopment have placed v\0ter at the top of
thei r agendas W hy thi s sxiden attenti on to
a resource that was after al I , central to
human needs long before the dawn of
civilisation?
Atonele/d, the water issue] ustifies the
priority accorded it because demand for
water i s rapi dl y outstri ppi ng aval I abl e suppi y
i n I arge parts of the worl d. A s popul ati ons
grow, and economic de/dopment leads to
higher consumption, demand for v\ater
i ncreass sharpi y putti ng i ntense pressure on
aval I abl e stocks T h i s can cause g'owi ng
social tensions ore/en lead to outri^t
conflict. While commonly expressed predic-
ti ons that future v\ars will largdy befought
over water may be exaggerated, nobody
doubts that access to both surface and giound
v\ater i s an i ncreasi n^ y contenti ous i sue.
Where co-operation gives way to unfair
competition between different v\ater ussor
betv\een comnxini ties and countries a range
of new i ssues come to the fore. T hes i ssues
rdate to the distri bution of power and
influence within societies and between
countries They concern the rdative v\eight
of the different factors that make up the
deci si on- maki ng mi x. A nd they rd ate to
how Choi ces are made betv\een aval I abl e
options
T he i ssues surroundi ng dams are the i ssues
surroundi ng v\ater, and howv\ater-rdated
deci si ons are made. Thereislittlepublic
controvert about the choice betv\een an
embankment dam or a gravity dam, or
whether to use earth, concrete or rock-fi 1 1 ,
possi bl y e/en over fi nanci ng the devd op-
ment. T he i ssues al I rd ate to what the dam
wi 1 1 do to ri ver f I ow, to ri ^ts of access to
water and river resDurces to whether it wi 1 1
uproot existing human settlements disrupt
the culture and SDurcesof livdihood of local
communities and deplete and degrade
environmental resDurces Conflicts over
dams are more than conf I i cts over water.
2
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
T hey are conflicts over human development
and life itself.
If water is life, rivers are its arteries. Dams
regulate or divert the flow through these
arteries, affecting the life-blood of humanity.
The fact that they aim to do so in the
interests of humankind only makes the
decision to build a large dam more sensitive,
one that will trigger a range of apprehen-
sions, hopes and fears, both rational and
irrational.
T his C hapter examines the context of the
debate on large dams that led to the estab-
lishment of theCommission. It beginswith
a broad look at the past and present 'drivers'
of the demand for water, and the role of
large dams in meeting this demand. T hen it
presents general patterns and trends in the
development of large dams during the 20*
century, along with a brief description of the
mai n purposes for bui I di ng dams. The
chapter al so i ntroduces the seal e and
si gn i fi cance of the benefi ts^ costs and
i mpacts of I arge dams^ descri bed i n more
detai I i n C haptens 2 to 6.
1 1 goes on to look at the central issues i n the
I arge dams debate - the benefits and adverse
impacts - and the positions taken by differ-
ent constituencies on the past effectiveness
of dams and what nBy constitute good
practi ce i n future deci si on- nBki ng. C hapter 7
pi cks up many of these themes and al so
situates the dams debate i n the emerg ng
global de/dopment framework.
T he fi nal secti on of the chapter traces the
estabi i shment of the C ommi ssi on and
highl ightsthe mandate given to it i n
response to the debate on I arge dams It
then lays out the methodology adopted and
the process fol I owed by the C ommi si on .
Water and Development
Today around 3 800 km' of fresh v\ater is
withdrawn annually from the world's I akes^
rivers and aquifers' This istwice the
vol ume extracted 50 years ago.
A growing population and a
rising I e/d of economic activity
both i ncreas human demand for
water and water- rdated services
De/dopment, technological
change, i ncome di stri buti on and
life-styles all affect the le/d of
water demand.
How much water do we need?
World population has passed 6 billion.
A Ithough the annual increase probably
peaked at about 87 million around 1990, the
high proportion of young people in most
developing countries means that global
population will continue to increase signifi-
cantly well into this century
Recent projections suggest a peak of be-
tween 7.3 billion and 10.7 billion around
2050 before total population begins to
stabilise or fall.' Predictions cannot be
precise, because other dimensions of devel-
opment such as access to health, education,
income, birth control and other services
influence the pace of population growth.
Despite the massive investment in water
resource management and particularly in
Boxl.l New paradigm for water use
Successfully meeting human demands for water in the next century wil
ncreasingly depend on non-structural solutions and a completely new approach
to planning and management. The most important single goal of this new
paradigm is to rethink water use with the objective of increasing the productive
use of water Two approaches are needed, increasing the efficiency with which
current needs are met, and increasing the efficiency with which water is allocated
among different uses.
Source: Gleick, 1998
Today, around 3 800 km^
of fresh water is
withdrawn annually from
the world's lakes, rivers
and aquifers. This is twice
the volume extracted 50
years ago.
The Report of the World Commission on Dams
3
Chapter 1
dam^ billionsof children, v\omen and men
i n mral areas lack access to the most basic
v\ater and sanitation services A Ithough
probi ems of acces are worst i n rural areas
rapid urbanisation is also increasing the
demand for v\0ter- related services I n 1995,
46% of the wDrld's population lived in urban
areas I f current trends persi st (and they may
accelerate), that figure could reach 60% by
the year 2030 and over 70% by 2050.' M ost
of th i s g'owth wi 1 1 take pi ace i n de/d opi ng
countri es where an esti mated 25 to 50% of
urban i n habitants I ive i n i mpoverished
si ums and squatter stti ements Lack of
access to v\0ter in both rural and urban areas
is not just a question of supply It is partly due
to i nequi tabi e access to exi sti ng suppi i es
U rban i sati on i mpl i es an i ncreasi ng concen-
tration on water and energy demand in
mega-cities a switch to different lifestyles
and consumption patterns and a loss of
productive agricultural landthrou^ urban
expansion. It isa widely held view that lack
of attenti on to devd opment i n rural areas i s
f ud I i ng unsustai nabi e forms of urban
g'owth, shifting poverty from rural to urban
areas, and contributing to rapidly growing
demand for additional services. In heavily
populated countries like China, India and
Indonesia many question the sustain ability of
the high rates of urbanisation in mega-cities
Economic growth and
development
World economic activity has grown approxi-
mately five-fold since 1950 at a rate of about
4% peryear^ Theregonal balance is
changing, with si giif leant g'owth in Asia
over the past 25 years At present, OEC D
countri es conti nue to account for the I argest
share, amounting to 55% of world produc-
tion at purchasing power parity nearly 80%
at market prices '
Economic growth hastv\o implications for
water demand. The first is that increaad
economic activity will increase the demand
for water- rd ated servi ces - regardi ess of
whether the demand is satisfied by more
eff i ci ent use of the exi sti ng suppI y or by
i ncreasi ng the I e/d of supply T he second i s
that both the de/d opment brought about by
economic growth and the technological
changesthat accompany it will lead to
structural changes i n the pattern of goods
and srvi ces that society produces and i n
the way these sen/i ces are provi ded. T he
water demand per unit of G ross Domestic
Product (GDP) will depend on how these
tvjo components of economi c growth are
combined. Countries with the same product
per capita but different production charac-
teristics- for example, with large scale
i rri gated ag'i culture or v\0ter i ntensive
industries- may consume three or four
timesmorewater per dollar of GDP Thisis
evident when compari ng the U nited States
and Canada with Germany or France, or
India with China.
4
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
Development and technological change can
also save water per dollar of output. Between
1950 and 1990 the world economy grew by a
factor of five while world water withdrawals
only grew by a factor of 27 The last fifty
years have sen a v«)rldvvide reduction i n
the amount of v\0ter per dol I ar of non-
agri cultural production as a result of im-
proved technology more recycling enforce-
ment of environmental standardSi hi^er
vvater pri ces, and i ndustri es movi ng av\ay
from natural resource i ntensi ve acti vi ti es'
H ovjejer, the vvater management practi ces
and technologies that enable such advances
are not wi del y aval I abl e or promoted and are
often absent where they are most needed.
Despite the i ncreasi ng number of options
aval I abl e, the total number of peopi e
without access to clean water is growing.
Income distribution and life-styles
Economic activity and development affect
income, income distribution and lifestyles.
T hese in turn affect the demand for water
through changes in the level and composi-
tion of household consumption in areas such
as diet, the use of household appliances and
standards of sanitation.
D rasti cal I y I ov\er average fi gures for domes-
tic consumption in de/doping countries
reflect not only different life styles and
lower incomeSi but also a huge backlog of
unsatisfied demand. T he lower average also
masks extremely hi^ consumption anx)ng
better-off urban households and acute
deprivation among rural and urban poor
Competing uses of water
Water analysts foresee increased competi-
tion among water users in meeting the
growing demand. They predict that competi-
tion wi 1 1 i ncreas among the three I argest
v\0ter users in global terms. Agriculture
accounts for about 67% of withdrawal ^
industry uses 19% and nxinici-
pal and domestic uses account
for 9%.' " A nalysts foresee that
thes uses will continue to draw
from the water needed to
sustain natural ^ems. I n dry
climateSi evaporation from
large resen/oi rs, esti mated at
close to 5% of total water withdrav\alSi may
also be a significant consumptive use of
v\ater."
In 1990 over a billion
people had access to less
than 50 litres of water a
day.
H ow much water is needed for one more
person? A Ithough climate and culture
influence what constitutes an appropriate
level of domestic water consumption,
several international agencies and experts
have proposed 50 litres per person per day
(or just over 18.25 m^ a year) as an amount
that covers basic human water requirements
for dri nki ng sanitati on, bathi ng and food
preparation. In 1990over a billion people
were bd ow that I e/d
O n the other hand, househol ds i n de/d -
oped countries and better-off households i n
devd opi ng ci ti es use from 4 to 14 ti mes the
threshol d of 50 1 itres per person a day
Regonal trends vary widdy as shown in
Figures 1.1 and 1.2. Despite increasing
urbanisation in Africa, Asia and Latin
A meri ca, agri cul ture i s the domi nant water
user i n these reg ons^ accounti ng for approx-
i matdy 85% of al I water used. I n al I regions
of the world except Oceania, domestic or
household v\ater consumption accounts for
I ess than 20% of water use.' ' I n A fri ca,
C entral A meri ca and A si a, thi s i s nearer to
5%. I n the more de/d oped reg ons of
Europe and N orth A meri ca, i ndustry i s the
major water consumer. The water us
breakdown i n a specifi c country i nfl uences
where v\ater demand management opportu-
nities exist.
The Report of the World Commission on Dams
5
Chapter 1
Figure 1.1: Annual
fresh water
withdrawals as a
percentage of
total resources
withdrawn (1996)
Low income
countries
Lower middle
income countries
Upper middle
ncome countnes
Higli income
countnes
□ % for agriculture
□ % for domestic use
□ % for industry
Source: World Bank 1999a.
For many water- stressed countries that are
industrialising, and that have large urban
populations, the present water crisis often
revolves around industrial and domestic
water supply and sanitation. T his is evident
in the significant trend over the past few
decades towards diverting water from
agricultural to municipal and industrial uses
A s this is happening in the context of an
overall increase in withdrawals, it will lead
Figure 1.2: Annual fresh water withdrawals per capita average
(1987-95)
OECD
ndustnalised countnes
Eastern Europe & CIS
Latin America & Canbbean
South Asia
SE Asia & the Pacific
East Asia
Arab States
Sub-Saharan Afnca
Least developed countries
All developing countnes
Wo rid
1
1
1
1
1
1
1
^ 1
1
1
0 200 400 600 800 1000 1200
Fresh waterwithdrawals per capita (m^)
to increased competition for water, unless
more efficient water use in both sectors
accompanies the transition from agricultural
to industrial based economies. "
There are additional challenges To meet
food requirementSi water used in ag'i culture
may have to i ncrease 15 to 20% by 2025
even wi th i mprovements i n i rri gati on
effi ci ency and agronomi c potenti al In
addition to increasing food production in
the face of vvater stress distribution, equita-
bl e access purchasi ng povver and poverty are
central issues in meeting food demand.
Beyond competi ng human demands vvater
for nature is an essntial consideration. The
fresh water eco^ems that provide the
I i vd i hoods of the worl d's ri veri ne communi -
ti es and many other goods and servi ces to
our soci eti es depend on v\0ter. A rresti ng,
and where posa bl e reversi ng the accd erat-
i ng trend to i ncreasi ng degradation of many
of the worl d's watersheds caised by human
activity have emerged as an urgent priority
Availability and quality of
water
Rainfall and other sources of freshwater
(rivers, lakes, groundwater) are unevenly
distributed around the world and are not
Source: UNDP, 1999.
6
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
always located where human water demand
arises. Pollution threatens surface and
ground water sources and may make them
unfit for many uses, or require expensive
treatment. Pollution is especially serious
where ground water resources are over-
exploited and suffer from reduced natural
rates of recharge due to deforestation, land
use changes and urbanisation.
Fully one third of the countries in water-
stressed regions of the world are expected to
face severe water shortages this century, and
within these regions there are great dispari-
ties in access to fresh water. N ot surprisingly
a significant number of less developed
countries, including regions of India and
C hina, are facing severe shortages.^^ With
population growth, the nurrter of countries
in this category is increasing and by 2025
there wi 1 1 be approxi matdy 6.5 ti mes as
many people- atotal of 3.5 billion - living
i n water- stressed countri es.' ' Fi gures 1.3 and
1.4 show the distribution of world fresh
water resources and selected water stressed
countries The uneven distribution of water
suppi y means that countri es may have v\0ter
surpi us and water deficit regions
N ot only surface v\0ter is under presure.
T he growl ng rate of esctracti on of fresh
water from rivers and lakes is matched by
i ncreasi ng extracti on of ground water, with
many aquifers now seriously depleted. The
vol ume of ground water withdrav\al , pri ma-
rl I y for i rri gati on but al so for nxin i ci pal and
industrial use, exceeds long-term recharge
rates I n many parts of I ndia, Pakistan and
China, the water table is sin king at the rate
of one to two meters a year.' '
C I i n^e change can al so affect the sasDnal
di stri buti on of rai ns and v\0ter aval I abi I i ty.
Studi es and model ling exerci ses revi ewed by
the Commissi on, including those by the
India
na 7%
Bangladesh USA 6% Indonesia 6%
6%
Figure 1.3:
Distribution of the
world's water
Source: G lack, 1998.
I ntergovem mental Panel on C I i mate
C hange ( I PC C ) , strong y suggest that gl obal
warm! ng trends could significantly i ncrease
the vari abi I ity of weather patterns' ' Re-
sults coul d i ncl ude a decl i ne i n rai nfal I i n
Figure 1.4 : Selected water stressed countries
I
Saudi Arabia
Yemen
Egypt
Israel
Korea
Iraq
Madagascar
Spam
ran
M orocco
Pakistan
Germany
Italy
South Afnca
Poland
0 20 40 60
100 120 140 160 180
%
Water stress: withdrawals over 25% of annual
water resources
Source: Raskin etal, 1995.
The Report of the World Commission on Dams
7
Chapter 1
arid and semi-arid regions, and an increase
in seasonal variations in rainfall around the
globe over the next 50 to 100 years.
Development and Large
Dams
R iver basins are renowned as the cradles of
civilisation and cultural heritage. A ncient
and modern communities alike have de-
pended on rivers for livelihood, commerce,
habitat and the sustaining ecological func-
tions they provide. Throughout history
alterations to rivers - natural or human
generated - have affected riverine commu-
nities in one way or another.
The earliest evidence of river engineering is
the ruins of irrigation canals over eight
thousand years old in M esopotamia. Re-
mains of water storage dams found in
Jordan, Egypt and other parts of the M iddle
East date back to at least 3000 BC .
H istorical records suggest that the use of
dams for irrigation and water supply became
more widespread about a thousand years
later. A t that time, dams were built in the
M editerranean region, C hina and M eso
A merica. Remains of earth embankment
dams built for diverting water to large
community reservoirs can still be found in
Sri Lanka and Israel. The Dujiang irriga-
tion project, which supplied 800 000 hec-
tares in China, is 2 200 yearsold." Dams
and aqueducts bui It by the Romans to
supply dri nki ng water and sewer ^ems for
towns sti 1 1 exi St today
T he fi rst use of dams for hydropov\er genera-
tion v\as around 1890. By 1900, SB/eral
hundred large dams had been built in
different parts of the v\orld, mostly for v\ater
supply and irrigation.
Dams in the 20*'' century
T he last century saw a rapid increase in
large dam building. By 1949 about 5 000
large dams had been constructed worldwide,
three-quarters of them in industrialised
countries. By the end of the 20'* century,
there v\ere over 45 000 1 arge dams i n over
140 countries"
Figure 1.5:
Regional
distribution of
large dams at the
end of the 20*
century
China
Asia
N orth and
Central America
Western Europe
Africa
Eastern Europe
South America
Austral-Asia ^
5 000
10 000 15 000
N umber of dams
20 000
25 000
Source: WCD estimates based on ICOLD,1998 and oftier sources (See A nnex V) .
8
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
T he period of economic growtli following Figure 1.6: Construction of dams by decade (1900-2000)
the Second World Warsaw a phenomenal
rise in the global dam construction rate,
lasting well into the 1970s and 1980s. A t its
peak, nearly 5 000 large dams were built
worldwide in the period from 1970 to 1975.
Thedeclinein the pace of dam building
over the past two decades has been equally
dramatic, especially in N orth A merica and
Europe where most technically attractive
sites are already developed. T he average
large dam today is about 35 years old.
T he top five dam-building countries ac-
count for nearly 80% of all large dams
worldwide. China alone has built around
22 000 large dams, or close to half the
world's total number Before 1949 it had only
22 large dams. 0 ther countries among the top
five dam building nations include the U nited
States with over 6 390 large dams; I ndia with
over 4 000; and Spain and Japan with between
1 000 and 1 200 large dams each.
Figure 1.7: Dams constructed over time by region (1900-2000)
8 000
Source: ICOLD, 1998. N ote: Information excludes the time-trend ofdamsin C hina.
6 000
5 000
m 4 000
o 3 000
^ 2 000
1 000
,2>
rd' ^ r& ^ ^ T§i
Source: ICOLD, 1998. Note: Information excludes dams in C hina.
The Report of the World Commission on Dams
9
Chapter 1
Figure 1.5 shows the proportional distribu-
tion of large dams in different regions of the
world. A pproximately two thirds of the
world's existing large dams are in developing
countries. Figures 1.6 and 1.7 show the
cumulative and time-line trends in the
construction of large dams in the last
century. The time-trend figures exclude data
on most of the dams in C hina and therefore
differ slightly from the trends described in
the text.
Current regional focus for large dam
construction
C onstruction of large dams peaked in the
1970s in Europe and N orth A merica. Today
most activity in these regions is focused on
the management of existing dams, including
rehabilitation, renovation and optimising
the operation of dams for multiple func-
tions. A n estimated 1 700 large dams have
been under construction in other parts of
the world in the last few years. Of thistotal,
40% are reportedly being built in India (see
Table 1.1 and A nnex V for details).
Since average construction periods generally
range from 5 to 10 years, this indicates a
worldwide annual average of some 160 to
320 new large dams per year.
Table 1.1: Dams currently under construction
Country
N umber of dams
Purpose
India
Varies from 695 to 960 depending
on the source of information
Irrigation, multipurpose
China
280
Flood control, irrigation,
hydropower including
pumped storage.
T urkey
209
Irrigation, hydropower,
water supply
South Korea
132
Irrigation, hydropower,
flood management, water
supply
Japan
90
M ainly flood control
Iran
48 (above 60m)
Irrigation, multipurpose
Sources: ICOLD, 1997; International Journal of Hydropower and Dams, 2000; WCD India Case
Study, 2000: 1 apan Dam A Imanac, 1999, N ational R egister of L arge D ams for I ndia cited in WCD
india Case Study
Decommissioning of large
dams
T he end of the 20* century saw the emer-
gence of another trend rdati ng to large
dams - decommissioning dams that no
I onger serve a useful purpose, are too expen-
siveto maintain safely, or have unaccepta-
ble levels of impacts in today's view. Mo-
mentum for ri ver restorati on i s accd erati ng
in many countries especially in theUnited
States where nearly 500 dams mai nly
relatively old, small dams have been decom
missioned. Si nee 1998, thedecommission-
i ng rate for large dams has overtaken the
rate of constructi on i n the U nited States
Experi ence i n N orth A meri ca and i n Europe
shows that decommi ssi on i ng dams has
enabled the restoration of fisheries and
riverine ecological processes However, dam
removals without proper studies and mitiga-
tion actions cause public concerns and
envi ronmental probi ems T hese i ncl ude
negati ve i mparts on downstream aquati c I i fe
due to a sudden fl ush of the sedi ments
accunxil ated i n the reservoi r. W here there
has been industrial or mining activity
upstream these sdi ments may be contami -
nated with toxic substances A nother
opti on i s to open the f I oodgates of dams
where this is possible, either as a form of
decommi ssi on i ng or to al I ow natural ri ver
flows and unrestricted fish passage at critical
ti mes of the year. While decommi ssi oni ng
efforts in the U nited States and France have
received publ ic support thus far, there may
be local opposition where changes i n the
f I ow and water I evd s affect servi ces previ -
ously provided by the dam, or where de/d-
opment has taken pi ace around the reservoir
and downstream.
T here i s comparati vdy I i ttl e experi ence
with the removal of larger dams The bigger
the dam the more probI ems decommi ssi on-
10
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
ing or removal are likely to face, and the
more expensive they are likely to be. More
studies are needed to address the costs, benefits
and impacts of decommissioning as the stock
of dams ages and choices must be made
between refurbishing and decommissioning.
Large Dams as Instruments
of Development
Dams have been promoted as an important
means of meeting perceived needs for water
and energy services and as long-term, strategic
investments with the ability to deliver
multiple benefits. Some of these additional
benefits are typical of all large public infra-
structure projects, while others are unique to
dams and specific to particular projects.
Regional development, job creation and
fostering an industry base with export
capability are most often cited as additional
considerations for building large dams.
Other goals include creating income from
export earnings, either through direct sales
of electricity or by selling cash crops or
processed products from electricity intensive
industry such as aluminium refining.
Water-rich countries such as Canada,
N orway, Brazil and parts of Russia have
developed large dams for hydropower
generation where suitable sites were availa-
ble. Governments in semi-arid countries
such as South A frica, A ustralia and Spain
have tended to build dams with large storage
capacity to match water demand with stored
supply, and for security against the risk of
drought. For example, in Spain - one of the
top five dam-building countries - rainfall is
highly variable between seasons and from
year to year.
In East and Southeast A sia, during the
monsoon season, rivers swell to over 10
Table 1.2: Estimated annual investment!
($US billion per year)
n dams in the 1990s
Developing
countries
D eveloped
countries
Total
Dams for hydro power
12-18
7-10
19-28
Dams for irrigation
8-11
3-5
13-18
Dams for water supply
1.5
Dams for flood control
0.5-1.0
Total
22-31
10-15
32-46
Source: WCD T hematic Review 111,2, FinancingTrends. N ote that tliese figures include generating
installations for hydropower dams but not canals and piped distribution systems served by irrigation and
water supply dams
times the dry season flow. In these settings
dams have been constructed to capture and
store water during wet seasons for
release during dry seasons.
Dams are promoted as an
important way to meet
water and energy needs
and support economic
deveiopment.
Large dams require significant
financial investments. Estimates
suggest a worldwide investment
of at least two trillion U S dollars
in the construction of large dams
over the last century. D uring the 1990s, an
estimated $32-46 billion was spent annually
on large dams, four-fifthsof it in developing
countries. 2^ Of the $22-31 billion invested
i n dams each year i n de/dopi ng countries>
about four-fifths v\as financed di recti y by the
public sector.
Today the worl d's I arge dams regul ate, store
and divert v\0ter from rivers for agricultural
Box 1.2: Types of large dams
There are various definitions of large dams, Tfie International Commission on Large
Dams (ICOLD), established in 1928, defines a large dam as a dam with a height of
15m or more from the foundation. If dams are between 5-15m high and have a
reservoir volume of more than 3 million m^ they are also classified as large dams.
tJsing this definition, there are over 45 000 large dams around the worid
The two mam categones of large dams are reservoir type storage projects and
run-of-nver dams that often have no storage reservoir and may have limited
daily pondage. Within these general classifications there is considerable
diversity in scale, design, operation and potential for adverse impacts.
Reservoir projects impound water behind the dam for seasonal, annual and, in
some cases, multi-annual storage and regulation of the nver
Run-of-river dams (weirs and damages, and run-of-nver diversion dams) create a
hydraulic head in the nver to divert some portion of the river flows to a canal or
power station.
The Report of the World Commission on Dams
11
Chapter 1
production, human and industrial use in
towns and cities, electricity generation, and
flood control. Dams have been constructed
to a lesser extent to improve river transpor-
tation and, once created for other purposes,
the reservoirs of many large dams have been
used for recreation, tourism, and aquaculture.
Figure 1.8 shows that about one third of
large dams serve two or more purposes
Recent trends have favoured multi-purpose
dams. A s the figure shows, there is consider-
able regional variation in the functions
served by large dams and these functions
have also changed over time.
T he majority of large dams in A frica and
A sia are for irrigation, though large dams are
more often than not multi-purpose. T here is
growing interest in dams for flood protec-
tion and in pumped storage dams for power
generation to meet peak demand in A sia.
Single-purpose hydropower dams are most
common in Europe and South A merica,
whereas single- purpose water supply projects
dominate in A ustral-A sia. N orth A merica
has a relatively even spread of large dam
functions. A II other potential purposes,
including recreation and navigation, were
found in less than 5% of projects Overall,
the proportional share of irrigation dams
and multi purpose dams has been increasing
over the last 20 years, while the share of
hydropower dams has been decreasing.
Irrigation water supplied from
large dams
Irrigation isthe single largest consumptive use
of fresh water in the world today It is linked to
food production and food security A bout one
fifth of the world's agricultural land is irrigated,
and irrigated agriculture accounts for about
40% of the world's agricultural production."
The total area irri^ed expanded drarrBtically
duringthefirst years of the g'een ra/ol uti on i n
thel96Q5 i ncreasi ng yields and bringng down
food prices From 1970 to 1982, ^obal gDvvth
i n the i rri gated area slov\ed to 2% a year. I n
the post green re/olution period between
1982 and 1994 it declined to an annual
average of 1.3%.'*
Figure 1.8:
Distribution of
existing large
dams by region
and purpose
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Africa North South Asia Austral-Asia Europe
America America
□ Flood Control □Irrigation nWaterSupply □ Hydropower ■ Other Single Purpose ■Multipurpose
Source: A dapted from ICOLD, 1998 (See A nnex V).
12
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
Half the world's large dams were built exclu-
sively or primarily for irrigation, and an
estimated 30 to 40% of the 268 million
hectares of irrigated lands worldwide rely on
dams. D iscounting conjunctive use of ground
water and surface water, dams are estimated to
contribute to at most 12-16% of world food
production. G round water irrigation typically
has higher yields, for a given amount of water,
than surface water irrigation because of better
control of the resource at farm level."
Four countries- China, I ndia, U nited States
and Pakistan account for nDrethan 50% of
the vjo\] d's total i m ^ed area. A s Fi gure 1. 9
shov\^ thescaleand significance of lar^ dams
for im^ion variessigiificantlyfrDm country
to country i n terms of the percentage of
agi cultural land im^ed, and the proportion
of the i rri gati on v\ater suppi i ed fix)m I ar^
dams Dams suppI y the vvater for al most 100%
of irrigated production in Egypt- most coming
from the A swan Hi^ Dam- whilein Nepal
and Ban^ adesh dams pnDvi de onl y 1% of
i rrigation vjcter. I n thetvwD countries vvith the
largestirri^edaraas- IndiaandChina-
official statistics suggest I ar^ dams supply
approxi nBtdy 30 to 35% of i rrigation v\ater,
vvith the balance coming nBinlyfromguund
vjcter 93urces T here i s some controvert i n
cal cul ati ng the percental of food producti on
attributable to dams and pariiiculariyon the
methods ised to account for conj unctive us
of surface and gound vjEter} '
U nsustai nabi e i rri gati on practi ces have
affected more than a fifth of thevvDrid's
irri^ed area in arid and ami-arid regons As
a result, 93il salinity and v«terioggng either
nBkeagicultureimpossible, or limit yields
and the types of crop that can be giovvn. I n
other reg ons over- us of tubewel I s has
depl eted ground v\ater aqui fers I ov\eri ng v«ter
tables and nBking extraction increasin^y
expensive and especiallydiffi cult for srrBll-
holders T he absnce of effective policies on
conj unctive us of guund vjEter and surface
v\ater resDunces i s one of the most i mportiant
concems
Water for industrial use and
urban centres
Globally urban water consumption accounts
for 7% of total freshwater withdrawals from
rivers, and 22% from lakes" Manyresrvoirs
100
90
80
70
50
50
40
30
20
10
Uzbekistan
Egypt
.Pakistan
" .Japan
Vietnam
Cliina India-
Korea - Republic Qt.
Nepal
>
Bangladesh Sparn- - M exico
Thailand • •
• •Turkey M alaysia
"France Russia ^ , unctraUa
• South Afnca -Australia
10 20 30 40 50 60 70
% of irrigated area with water sourced from dams
Source: WCD Thematic Review iV.2 irrigation Options, Section 1.3.
90 100
Figure 1.9:
Agricultural land
irrigated from
dams
The Report of the World Commission on Dams
13
Chapter 1
Hydropower provides
19% of world's total
electricity supply with 24
countries depending on
It for more than 90% of
their supply.
were built to provide a reliable
supply of water to meet rapidly
growing urban and industrial
needs, especially in drought-
prone regions where natural
ground water sources and existing
lakes or rivers were considered
inadequate to meet all needs.
G lobally about 12% of large dams are
designated as water supply dams. A bout
60% of these dams are in North America
and Europe.
T he extent to which cities rely on dams and
reservoirs for urban and industrial water
varies greatly even within countries. In the
Saxony region of Germany reservoirs
provide 40% of the water supplied to two
million people, while Los A ngeles derives
55% of its water supply from local ground
water resources and 37% from a system of
reservoirs and pipelines that bring water
from more distant locations. H o C hi M inh
C ity in Vietnam gets 89% of its water from
surface sources, whereas H anoi gets 100%
from ground water.
Electricity generation for tlie
national grid
Electricity generation is an important reason
for bui I di ng I arge dams i n many countri es
ei ther as the pri mary purpose, or as an
addi ti onal fundi on where a dam i s bui 1 1 for
other purposes Over the last 22
years global electricity produc-
tion has more than doubled,
though access is highly skewed
between and within countries"
H ydnopov\er currenti y provi des
19% of the \Nor\ d's total el ectri c-
ity supply and is used i n over
150 countries It represents more than 90%
of the total national el ectri city supply in 24
countries and over 50% in 63 countries
A bout a thi rd of the countries i n the v\orld
currently rely on hydropower for more than
half of their electricity needs Five countries
- Canada, United States Brazil, China and
Russia - account for more than half the
world's hydropower generation. Betv\een
1973 and 1996 hydropower generation i n
non-0 EC D countri es g'ew from 29 to 50%
percent of v\orld production, with Latin
A meri ca i ncreasi ng its share by the geatest
amount i n that period."
Hydropov\er has been perceived and pro-
moted as a comparatively clean, low-cost,
renewabi e source of energy that rd i es on
proven technology. Except for resen/oi r
evaporation, it is a non-consumptive use of
water. O nee bui 1 1, hydropower, I i ke al I
renev\able sources is considered to have low
operati ng costs and a long I ife, particularly
for njn-of- river projects and reservoir
proj ects where sedi mentati on i s no concern .
I n the past, hydropov\er v\as especi al I y
attracti ve to govern ments wi th I i mi ted fossi I
fuel resources who would otherwise have
had to import fossil fudsto sustain power
generation. Atthe^obal scale, current
le/dsof hydropov\er generation offst 4.4
million barrds of oil -equivalent (thermal
d ectri c generation) a day roughly 6% of the
worid'soil production.
Protecting against floods
W hile natural floods have many beneficial
functions they also pose a threat to life,
health, livelihoods, and properi:y They
remain among the world's most frequent and
damaging disasters. Floods affected the lives,
on average, of 65 million people between
1972 and 1996, more than any other type of
disaster, including war, drought and fam-
ine" . During the same period, an estimated
3.3 million people v\ere left homdess every
14
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
year as a result of floods I n terms of its region-
al significance, flood-related economic losses
in A sia exceeded those in N orth A merica and
Europe between 1987 and 1996.^2
A bout 13% of al 1 1 arge dams i n the W3rl d -
i n more than 75 countri es - have a fl ood
management function." A Ithough dams
have h i stori cal I y been extensi vd y used as a
defence agai nst fl oods recent approaches
see flood protection as more than building
defences agai nst risi ng waters For i nstance,
reporti ng on the 1998 fl ood, C h i nese
authorities acknowledged that itssB/erity
was partly due to long-term envi ron mental
degradation and heavy logging throughout
the affected v\0tersheds' * T here are al so
C3EES where dams have created or worsened
f I oods due to dam breakSk poor reservoi r
operation and changed downstream sdi-
mentation patterns that reduce river chan-
nel capacity.
T he last two decades have seen a thorough
re-evaluation of what constitutes the
appropriate mix of prevention, defence and
mitigation against flood disasters Asa
result, the focus on control I i ng floodwaters
domi nant i n the 1950s- 1960s has I ost
ground to more envi ron mental ly baad and
i nteg'ated approaches T he reasons i ncl ude
f rustrati on at fl oods occurri ng despi te
structures bei ng i n pi ace, the hi ^ cost of
engi neeri ng sol uti ons and a better under-
standi ng of how natural ^ems work.
Problems Associated with
Large Dams
W hile dams have contributed to economic
growth in the 20" century the services they
provi de have come at a cost. This secti on
gi ves an overvi ew of the probi ems assxi ated
with I arge dams
Large dams have
fragmented and
transformed the world's
rivers, modifying 46% of
primary watersheds.
Physical transformation of
rivers
Large dams have fragmented and trans-
formed the world's rivers. The World
Resources Institute (W Rl) found
that at least one large dam _
modifies 46% of the world's 106
primary watersheds." The extent
to which river flows have been
changed varies around the world.
T he U ni ted States and the
European Union regulate the
fl ow of 60- 65% of the ri vers i n thei r terri to-
ri es thou^ the amount varies from basi n to
basin. Spain's 53 kmf of storage behind large
dams regulates 40% of its river flow, varying
from 71% in the Ebro river basin, to 11% in
the basinson the Galicia coast." In Asia,
just under half the rivers that are regulated
have more than one I arge dam.^ '
The nxxdifi cation of river flows on trans-
boundary ri vers has parti cul ar i mpl i cati ons
T here are 261 watersheds that cross the
pol i ti cal boundari es of two or more coun-
tri e^ T hese basi ns cover about 45% of the
earth's land surface, account for about 80% of
^obal river flow and affect about 40% of the
Box 1.3: Changing physical attributes and impacts of large dams
The volume of the reservoir relative to the annual nver flow is important in
relation to the purpose of the dam and how it is operated. It is aiso a major
factor in the scale of the ecological effects. The surface area of the reservoir or
the area flooded, points to the potential resettlement impact. The majority of
large dams have reservoir surface areas of 0-1 km- (more than 60%). This
includes run-of-river dams with no reservoir A small percentage of dams (2%)
have reservoir areas greaterthan 100 km .
Dunng the first half of the 20'' Centu^, the average height, reservoir volume
and reserv/Qir area increased in all regions. The average height of new dams was
30-34 meters from 1940 through 1990, but has increased to about 45 meters in
the 1990's, largely due to trends in Asia. The average reservoir area dramatically
increased from 1945 into the 1960'sto 50 km; declined through the 1980's to
and average of 17 km"; and has again increased in the 1990'sto around 23 km-.
Source: WCD analysisof ICOLD, 1998
The Report of the World Commission on Dams
15
Chapter 1
The construction of large
dams has led to the
displacement of some 40
to 80 million people
worldwide.
world's population. Issuesand
concerns faci ng ri pari an countries
i n these basi ns range from water
qual i ty to fl ow vol un^
T he aggregate storage capacity
of I arge dams based on dam
design, is about 6 000 kn1.*° Assumingthat
half the design storage is achie/ed in reality
the agjegate real storage capacity of large
dams^oballyissimilarto total freshvvater
withdrav\alsesti n^ed at around 3 800 kni
A n esti mated 0. 5- 1% of the total fresh
vvater storage capacity of existi ng dams is
lost each year to sdi mentation in both large
and small reservoirs worldwide.'' This
means that 25% of the W3rl d's exi sti ng fresh
v\ater storage capacity may be lost i n the
next 25 to 50 years i n the absence of meas-
ures to control sdi mentati on . T hi s I oss woul d
nnstly bein de/d oping countries and regons
which ha^ehi^ersdi mentation rates
Riverine ecosystems impacts
G rowing threats to the ecological integrity
of the world's watersheds come
from rising populations, water
pollution, deforestation, with-
drawals of water for irrigation
and municipal water supply and
the regulation of water flows
resulting from the construction
of large dams. A mong the many
factors leading to the degrada-
tion of watershed ecosystems,
dams are the main physical
threat, fragmenting and trans-
forming aquatic and terrestrial
ecosystems with a range of effects
that vary in duration, scale and
degree of reversibility
T he watersheds of the world are
the habitat of 40% of the world's
fish species, and provide many ecosystem
functions ranging from nutrient recycling
and water purification to soil replenishment
and flood control. At least 20% of the
world's more than 9 000 fresh water fish
species have become extinct, threatened or
endangered in recent years"
Fi sh are a criti cal sxurce of ani obI protei n for
more that 1 billion psDple. I n Africa, fish
protei n i s 21% of the total ani n^l protei n i n
the diet, and in Asia it is28%. While rivers
supply about 6% offish protein consumed by
hunBns^obally it isoften 100% of the supply
for nBny i niand riveri ne communities
Eco^em transformations do not only
occur i n the upper, I ower and mi d- reaches of
watersheds they al 93 impact on river
estuaries which are frequently complex
eco^ems C I osi ng the mouths of maj or
rivers salt intrusion, destruction of man-
groves and I oss of v\etl ands are among the
many issues at stake.
Social consequences of large
dams
W hile many have benefited from the
services large dams provide, their construc-
tion and operation have led to many signifi-
cant, negative social and human impacts.
T he adversely affected populations include
directly displaced families, host communi-
ties where families are resettled, and riverine
communities, especially those downstream
of dams, whose livelihood and access to
resources are affected in varying degrees by
altered river flows and ecosystem fragmenta-
tion. M ore broadly whole societies have lost
access to natural resources and cultural
heritage that were submerged by reservoirs
or rivers transformed by dams.
T he construction of large dams has led to
the displacement of some 40 to 80 million
16
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
people worldwide, as shown in C hapter 4."*
M any of them have not been resetti ed or
received adequate compensation, if any."
Betv\een 1986 and 1993, an estimated
4 million peoplev\eredisplaced annually by
an average of 300 1 arge dams starti ng
construction each year.*' Thes figures only
give an i dea of the si e of the probi em, si nee
there are enormous vari ati ons from case to
caee.
T he seal e and range of soci al i ssues encoun-
tered i n the ri ver basi ns al tered by I arge dam
construction vary from region to region.
T he number of peopi e deri vi ng thei r I i vd i -
hood di recti y from the river and its eco^
tern and the overall population density in
the river basin, gives an indication of the
potential impacts A stable 1.3 illustrateSi
population density can vary significantly
Thew3rld'stw3 most popul ous countries -
C hi na and I ndia, have bui It around 57% of
the worl d's I arge dams - and account for the
largest number of people displaced. I n the
late 1980sChina officially recognised 93me
10.2 million people as 'reservoir resetti ers:,
thou^ other SDurces suggest the fi gure may
be substanti al I y h i gher. * ' Large dams and
reservoi rs al ready bui 1 1 i n the YangtE basi n
alone have led to the relocation of at least
10 mi 1 1 ion people" In India, estinBtesofthe
total number of peopI e di spl aced due to I arge
dams vary from 16 to 38 mi 1 1 ion people"
Resetti ement causd by I arge dams has been
a si gni fi cant part of total resttl ement for al I
publ i c i nf rastructure de/d opment. I n
C hi na, I arge dams are esti n^ed to have
di spl aced an esti mated 27% of al I peopI e
displaced by de/d opment projects (the total
i ncl udes peopI e di spl aced by urban expan-
si on, roads and bri dges) }" I n I ndi a the
figure is77% (thistotal excludes people
di spl aced by urban de/d opment) ."A mong
World Bank funded projects
involving displacement, dams
and reffirvoirs accounted for
63% of peopI e di spl aced } '
T hese fi gures are on I y esti mates
and do not i ncl ude people
di spl aced by other aspects of the
pro] ects such as canal Sj pov\er-
houses project infrastructure
and asaxiated compensatory
measures such as bi o- resen/es
The last three decades
especially have seen
dramatic and wide-
reaching changes In
perceptions of
development and
concepts of
Interdependence with
other people and with
nature.
T hese are not the on I y probI em areas and
C haptens 2 to 6 exami ne other reasDns for
dissatisfaction.
Understanding the Large
Dams Debate
The huge growth of dam building in the 20'*
century took place agai nst a backdrop of
tremendous political, economic and techni-
cal transformati ons - whi I e the vjor\ d's
population g'ewfrom 1.65 billion in 1900,
to 6 bi 1 1 i on by the end of the century. T he
I ast th ree decades especi al I y have seen
dramatic and widereachi ng changes i n
percepti ons of de/d opment and concepts of
i nterdependence with other people and with
nature. This dynami c of change i s al 93
redefi ni ng the rol es that governments> ci vi I
society and the private sector play i n water
Table 1.3: Population density of selected river basins
Country
River basin
Population
density
(person/l(m2)
China
Yangtze
224
Brazil
Tocan tins/A mazon
6
India
Ganges
375
N orway
Glomma and Laagen
26
South Africa
Orange River Basin
12
Thailand
M un/M ekong
78
U nited States
Columbia/Snake
9
Zimbabwe and Zambia
Zambezi
35
SourceiRevenga et al, 1998.
The Report of the World Commission on Dams
17
Chapter 1
As dam building
accelerated after the
1950's, opposition to
dams became more
widespread, vocal and
organised.
and energy resource develop-
ment planning. A nd while the
wider transformations have
spurred the debate on large
dams, that debate itself has
become a major catalyst of
change.
We begin by looking at the genesis of
opposition to large dams from the perspec-
tive of social and environmental move-
ments, before considering the main issues in
the debate that the meeting in G land Switzer-
land handed down to the C ommission.
Genesis of the opposition to
dams
I n the previous section we saw that dam
building has a long history Conflicts too
have a long history, though it is only in
recent years that they have come to com-
mand wider attention. C onflicts over water
and dams are probably as ancient as dam
building itself. In medieval England, boat
owners opposed millers blocking rivers to
create millpondsto turn their water wheels.
Records from the 17* century td I of Scot-
tish fishermen tryi ng to destroy a newly
completed v\eir. I n the 19105^ conservation-
istjohn MuirunsuccesBfully lobbied public
opi ni on and the DSC ong'ess agai nst the
bui Idi ng of O'Shaugies^ dam i n Yosemite
National Park in California.
Populations affected or threatened by dams
have fi ercd y resi sted dam bui I di ng th rough-
out the I ast century Because they vvere often
i 93l ated, wi thout hd p from outsi de ^Tnpa-
thisers affected people's resi stance to dams
often v\ent unnoticed internationally and,
i n some esses, the states concerned used
i nti mi dati on and vi ol ence to suppress i t.
Eight people died and over 30 v\ere i nj ured
when colonial government forces fi red on
Tonga people resi sti ng removal to make way
for the Karl ba dam rearvoi r But i ntema-
tional attention focused on the mission to
rescue wi I dl ife stranded i n the i mpound-
mentarea." At around the same time in
Mexico, the Papal oapan River Commission
set f i re to the houses of i ndi genous M azatecs
who refused to move for the M i gud A I erren
dam. I n 1978 pol i ce ki 1 1 ed four peopi e when
they fi red at an anti- resettlement ral ly at
C handi I dam i n the state of Bi har i n I ndi a.
In Nigeria in April 1980, police fired at
people blocki ng roads i n protest agai nst the
Bakolori dam." And in 1985, 376 Maya
Achi Indians most of them women and
chi Idren, were nxirdered i n the course of
cl earl ng the area to be submerged by the
Chixoydam in Guatemala' .
A s dam bui I di ng accd erated after the
1950's opposition to dams became more
widespread, vocal and organised. Conserva-
tionists in northern countries especially in
the U nited States led the fi rst notable
success for campai gns agai nst I arge dams' '
T here, conservati on i sts were abl e to stop
18
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
the 175 metre-high Echo Park dam on a
tributary of the Colorado River in the 1950s
and two dams planned for the main stem of
the Colorado River in the Grand Canyon in
the following decade. A series of new laws
(notably the 1969 N ational Environmental
Protection A ct, and the 1974 Endangered
Species A ct), together with growing public
concern about environmental conservation,
public subsidies and budget deficits served
increasingly as grounds for halting expensive
dams, canals and channelisation projects
through the 1970s and early 1980s.
Over the past thirty years, the alliance of
northern activist groups (environmental and
human rights groups) with NGOsand
affected groups' associations in the South
has resulted in more vigorous and more co-
ordinated opposition to dams worldwide. In
many cases, the strength of these coalitions
has had a major impact on dam-related
planning and policy and at the level of
individual dams. Asa result of these con-
certed pressures the planning process, which
until the 1970s was the restricted preserve of
government agencies, engineers and econo-
mists, began to include environmental
impact assessments and some public reviews.
By the late 1980s environmentalists and
sociologists began to play a more important
role in the planning process, and by the
mid-1990s the involvement of affected
peoples and N G 0 s in the process became
more significant."
It is only fair to note that popular action has
al so supported dams. Farmers i n M adri d
recently marched to demand more water
and more dams for i rri gati on.
T he last few decades have seen a number of
significant policy stepsin responseto civil
soci ety demands and chang ng val ues T he
World Bank offersa good illustration. It is a
priority target of dam critics as it
i s often the f i rst and si ngl e I argest
fi nancier of large dams I n 1982,
the Bank adopted an internal
directive on indigenous peoples
Revisions of policies on resettle-
ment and envi ronmental assess-
ment are other i mportant mile-
stones More recently in 1993,
the World Bank established an
appeals mechanism, the I nspec-
tion Panel. Thisallov\EcitiHis
adversly affected by Bank funded
proj ects to fi I e cl ai ms regandi ng
violationsof its policies procedures
and loan agieerrents At the same
time the Bank promoted more
fl exi bl e approaches to i nforrrBti on
disclosure.*'
Often, these pol i cy reforms have been
cl osel y rd ated to the i mpacts of resi stance
from affected groups and i nternational
NGO campaigns around individual projects
I n 1973-77, the resistance of i ndigenous
peopi es to four dams al ong the C h i co R i ver
in the Philippines led the World
Ban k to wi thdraw from the
project and resulted i n the
government postponing it indefi-
nitely." Other important mile-
stones i ncl ude the Worl d Bank's
withdrawal from the Sardar
Sarovar project in I ndia in 1993,
and then from A run III in Nepal
in 1995(althou^ in the latter case public
pressure may not have been the decidi ng
factor)" . Sardar Sarovar, still on the agenda
despite the World Bank withdrawal, contin-
ues to be the focus of I ocal opposi ti on and
international support. More recent examples
of campai gis i ncl ude the T hree G orges
dams i n C hi na, the Pak M un i n T hai I and,
1 1 isu in Turkey, Raico in Chile, Epupa in
N ami bi a, the Lesotho H i ghl ands Water
The last few decades
have seen a number of
significant policy steps
in response to civil
society demands and
changing values.
The Report of the World Commission on Dams
19
Chapter 1
Project involving Lesotlio
and Soutii A frica, and
NamTfieun II in Laos.
As earlier sections of this
chapter showed, the pace
of dam construction has
slowed significantly in
recent years. This is partly
because industrialised
countries have used most of
their attractive sites, and
because of other factors, such as shifts in
dam financing from public to private
sources, matched with the decline in donor
funding and increasing costs of large dams.
H owever, it also reflects the effectiveness of
anti-dam strategies developed by environ-
mental and human rights activist groups
worldwide.
0 ne frequently asked question is why the
debate focuses so centrally on dams. T he
issues being debated, such as environmental
sustainability equitable development,
transparent and participatory decision-
making also apply to other large infrastruc-
ture projects and can only be addressed in
the context of broad societal change.
T he view that environmental and human
rights groups have singled out large dams as
their main target is misleading. 0 ne assess-
ment found that, of the 36 World Bank
supported projects that N G 0 activist groups
have targeted with some success, only 12 are
dam projects, compared to 14 forest and
natural resource management projects, five
mines or industrial management projects,
and two urban infrastructure projects. In
fact, I arge darre, I i ke many other i ndustri al ,
commercial, and governmental facilities are
increasin^y contentious and difficult to site
and bui I d, as are haardous v\aste decontanv
i nation facilities solid v\aste landfills
hospitals consrvation areas shopping
complexes hi^vvaysj parking areas and
many more.
I f dams are not the only i nfrastructure
proj ects subj ect to ri si ng cri ti ci sm, vvhy do
they seem to be often at the centre of
controvert, dispute, and e/en violent
confrontation? There are many reasons
I argel y rd ated to the seal e and scope of the
dams and the i rrpacts
■ Large dams represent major investments,
and in some cases may be the largest
single investment in a country These
i n vestments are essen ti al I y i rreversi bl e
and often highly politically charged.
■ Large dams are generally justified by
national or regional macro-economic
ben efi ts wh i I e th ei r physi cal i mpacts are
locally concentrated, mostly affecting
those within the confines of the river
valleys, and along the river reaches. T he
mismatch of benefits and costs translates
easily into confrontational attitudes.
■ Resettlement for large dams tends to be
on a larger scale than resettlement for
other types of physical infrastructure.
Roads and thermal power stations can be
sited on marginal land whereas dams
generally flood rich and fertile agricul-
ture land.
■ T hose resettled from dam or reservoir
sites very often lose not only their homes
but also their livelihoods. Relocation in
rural settings where good land is already
occupied can be problematic.
■ Large dams affect critical, life sustaining
resources, such as land, fisheries and the
quality and allocation of freshwater, an
increasingly scarce and coveted resource.
■ Lack of adequate and accepted solutions to
the social and environmental impacts of
large facilities has resulted in increased
social mobilisation around these issues.
20
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
■ T he lower than anticipated economic
performance of many projects.
These factors aside, the perceived injustice
in the distribution of the benefits and
impacts, and the increased concern about
the environmental implications indicate
that the debates, controversies and conflicts
surrounding large dams are not about dams
alone. T hey are part of a wider debate about
development, a debate where diverging views
on the use of natural resources and public
financial resources confront each other.
Disaggregating the debate
C learly the dams debate has many layers
and many interconnected issues. T he debate
is partly about what occurred in the past and
continues to occur today and partly about
what may happen in the future if more dams
are built - or are not built. T he extent to
which the debate is driven by social or
environmental concerns, or by broader
development considerations, varies from
country-to-country The dams debate i n the
U nited States, where the rate of decommis-
sioning dams is greater than the rate of
construction, is perhaps as intense as, but
qualitatively different from, the debate in
India which, along with China, isnow
building more dams than any other country
The two principal poles in the dams debate,
much in evidence at the G land W orkshop
in 1997, help to define the range of views
on past experience with large dams. The
first focuses on the gap between the prom-
ised benefits of a dam and what happens on
the ground. The review of global experience
with dams set out in C hapters2-6 confirms
that these concerns are justified. Dams have
often not met their targets.
T he other pole looks at the challenges of
water and energy development from a
perspective of 'nation building' and resource
allocation. To its proponents, the answer to
the question of past performance is self-
evident. Dams have generally performed
well as an integral part of water and energy
resource development strategies in over 140
nations and, with a few exceptions, dams
have provided an indispensable range of
water and energy services.
Beyond this rough characterisation, it is
possible to disaggregate the debate along a
few central themes. T he way the debate is
structured largely determines how it is
conducted at national and international
levels.
Performance: costs and benefits
Performance is often measured in terms of
whether the project delivered the benefits
that were the basis for approval and funding
of the project. But there
is more to judging per-
formance than this. A n
assessment of overall
performance, or perform-
ance over the full life-
cycle of a dam, often
yields many different
results. So too with costs,
much depends on how
completely costs are
internalised, and who
bears particular costs compared to how the
benefits are shared. T here is no easy formula
for calculating the costs and benefits to yield
a quick and easy judgement on the overall
balance.
Environmental impacts and
sustainability
At one level, the debate revolves around
how to measure the scale of the impacts,
whether these impacts can be avoided or
successfully mitigated, and whether they are
reversible or irreversible. A morefundamen-
Box 1.4: Central issues in the dams
debate: past and present
Performance: costs and benefits
Environmental impacts and sustainability
Social impacts and equity
Economics and finance
Governance and participation
Wider development impacts of dams
Alternatives to dams
Cross-cutting issues
The Report of the World Commission on Dams
21
Chapter 1
tal controversy centres on how
environmental considerations are
valued against immediate human
development needs. For commu-
nities who depend directly on
river resources for their liveli-
hoods, the environment is the
basis for meeting their needs. A n
example is the value placed on
biological diversity, or on the
ecosystem functions that may be
lost when the river flow is
regulated. T his debate becomes
especially heated where other
optionsare available. Other
controversies concern wider
regional or global environmental
impacts, for example whether
dams emit greenhouse gases or
reduce acid rain, under what
conditions, and to what extent relative to
the alternatives. T his aspect of the debate
extends to whether large dams should be
included in climate change protocols, and
whether and how dams should be treated in
future carbon emission trading schemes.
Social impacts and equity
This includes both the scale of the impacts
and the distribution of costs, benefits and
impacts, including those borne by relocated
families, host communities where families
are resettled, and riverine communities
affected by the change in river flows and
access to resources. Social issues go beyond
equity in the distribution of benefits and
impacts and relate to fundamental rights.
They include;
■ the burden placed on indigenous peoples
and ethnic minorities and the degree of
recognition of their distinctive status;
■ the impact on gender and basic human
rights; and
■ the loss of livelihood and health impacts
in rural areas.
Dealing with the legacy left by forced
relocation under both authoritarian and
democratic regimes and the need to allocate
responsibility for redress are other issues in
the debate. A n issue that has caused a great
deal of tension in the past concerns the
basis on which trade-offs, such as the
potential benefits to many at the cost of
hardship for a few, are invoked and decided.
Economics and finance
C ontroversy also surrounds the limits and
the ability of methods for economic assess-
ment to fully capture and reflect the various
social and environmental impacts and
values. Governments and financial institu-
tions continue to use traditional economic
and financial analysis - rate of return,
discount rates, sensitivity tests and the
exclusion or inclusion of indirect costs - as
primary decision criteria. T he debate is how
adequately these are applied in practice and
how they are balanced against other devel-
opment objectives or criteria. Related issues
include the cost recovery levels for all types
of dam projects, the implications for subsi-
dised use of water and the equity dimensions
of these subsidies.
Governance and participation
T he principal considerations related to
these issues centre on the transparency and
openness of options assessment, and how
planning and decision-making processes are
conducted. Other issues relate to the meth-
ods used to reconcile local or community-
led planning and consensus-building proc-
esses with more traditional and centralised
planning approaches, access to information,
and the dominance of single agencies in
planning with multiple responsibilities for
designing, construction and operating large
infrastructure projects. A t the heart of the
debate on these issues is the degree of
involvement of affected people and wider
22
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
groups of stakeholders in needs assessment
and project-level decision-making. Imple-
mentation creates its own set of governance
challenges, including whether agreed
standards are followed for social and envi-
ronmental mitigation, compensation and
enhancement.
Wider development impacts of dams
M any of the controversial issues go beyond
the impact of the project itself and touch
upon wider regional or national develop-
ment choices. Examples include the propor-
tion of the development budget allocated to
large dams as opposed to other uses of public
funds, the impact of an investment in a dam
on the country's debt burden, and competi-
tiveness considerations linked to subsidies.
T here are also more positive considerations,
including the potential of dams to contrib-
ute to export earnings.
Alternatives to dams
T he degree of even-handedness applied in
considering alternatives to large dams is,
perhaps, one of the most contested issues. It
raises the question of whether dams are
selected over other options that may meet
the water development or energy objectives
at lower cost, or that may offer more sustain-
able and equitable development benefits.
T his aspect of the debate extends to wheth-
er, and on what basis, dams should be
considered complementary to, or mutually
exclusive of other options of different scales
and types. W hether to give primacy to
options such as demand-side management or
improving the efficiency of existing supply
assets, and under what conditions, are also
debated. T he options debate connects with
the political economy of decision-making,
and therefore to the distribution of power
and influence within societies. This includes
how choices are made between available
options, and the extent to which market or
other institutional factors create barriers and
incentivesfor different options
that provide the same service.
Cross-cutting issues
A range of cross-cutting issues
turn on the role and influence of
various public and private sector
interests in the planning and
decision making process. This includes the
roles and influence of industry groups
ranging from domestic and international
consultants, to developers, contractors and
suppliers, and extends to the financial
service providers. T he financing role is
especially critical and includes the multilat-
eral and bilateral development banks,
insurers and export credit agencies, as well
as the commercial banks. Issues raised in the
debate range from harmonising standardsfor
financing dam construction to steps to
address corrupt practices that can distort
decision-making. T here are numerous other
cross-cutting issues such asthetransboundary
implications of damson shared
rivers.
The degree of even-
handedness applied in
considering alternatives
to large dams is,
perhaps, one of the most
contested issues.
T hese examples illustrate the
terrain, scope and complexity of
the debate, and how it has
become intertwined with wider
development concerns.
Economic development during
the first half of the 20* century
v\as domi nated by an approach
that errphasisd harnessing and
appropri ati ng vvater and other natural
resources for economic activities Si nee the
United NationsCharter (1945) andThe
Universal Declaration on Human Rights
( 1948) , a gl obal I y accepted de/d opment
framework stting out universal goals
normSi and standards has been gradual I y
emergi ng. T hese decl arati ons have been
augnented over ti me by the C onventi on
Since the United Nations
Charter (1945) and The
Universal Declaration on
Human Rights (1948), a
globally accepted
development framework
setting out universal
goals, norms, and
standards has been
gradually emerging.
The Report of the World Commission on Dams
23
Chapter 1
Concerning the Protection and Integration
of Indigenous and Other Tribal and Semi-
Tribal Populations in Independent Coun-
tries(1959), the International Covenant on
Economic, Social, and C ultural R ights,
(1966), the U N Declaration on the Right to
Development (1986), and the Rio Declara-
tion on Environment and Development
(1992), among others. Together they form
the current framework for sustainable
human development.
This framework has been widely
ratified by the world's nations,
although differences emerge in
setting priorities and emphases,
and in fulfilling, implementing,
and resolving conflicts between
competing rights. The realisation
of these rights presumes recogni-
tion of conflicts between com-
peting rights and the setting up
of mechanisms for negotiation
and conflict resolution. We
discuss the development frame-
work as it relates to the W C D 's
analysis and methodologies later
in this chapter, and Chapter?
presents an approach for design-
ing mechanisms to resolve and
negotiate competing rights.
W here international laws, norms and
aspirations are reflected in national legal
and policy frameworks, a number of obsta-
cles often prevent their translation into
reality These obstacles include lack of
political will or incentive, especially where
the democratisation process has not reached
a level where citizens and civil society
organisations are strong enough to influence
decision-making. A nother major obstacle,
especially facing poor countries, relates to
the lack of capacity (financial and human
resources but also institutional capacity) to
ensure that basic human rights and aspira-
tions are fulfilled for their citizens. Compli-
ance with existing laws and policies is
another important issue.
Is there a way forward?
All parties involved in the debate have their
own views on what needs to be done to
address the problems that they have identi-
fied. Some of the main suggestions made by
dam critics and proponents in various
declarations and statements are as follows.
Dam critics point to:
■ the need for more sustain able and
appropriate alternatives to dams;
■ the imperative for improved transparen-
cy accountability and public participa-
tion in the planning of water and energy
projects;
■ the importance of prior project approval
by potentially affected groups;
■ the need for protecting and promoting
the rights of potentially affected peoples,
and for setting in place measures to
reduce inequities; and
■ the necessity of reparation measures to
address the legacy of unfulfilled commit-
ments and unresolved problems.
Dam proponents underline:
■ the evolution and change in practices
over time;
■ the recognised need for social and
environmental concerns to be elevated
to the same level as safety concerns.
(They believe these environmental and
social costs must be avoided, or mini-
mised and properly mitigated when they
occur.);
■ the importance of ensuring that affected
people are better off as a result of dam
development, and of considering them as
24
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
shareholders, partners, and therefore
project beneficiaries;
■ the imperative of participatory decision-
mal<ing;
■ the need to promote the principles of
equity, efficiency and economic viability;
and
■ the importance of balancing the need for
development with the requirement of
ensuring environmental sustainability.
This broad taxonomy indicates that there
are many areas for potential convergence,
especially regarding what needs to be done
in the future. A II agree on the need:
■ to take environmental and social costs of
dams more seriously;
■ for more systematic consultation with
affected people;
■ to ensure that affected people are better off
as a result of the dam development; and
■ to ensure that the costs and benefits of
dams are shared more equitably
However, unresolved issues still separate
positions on a number of financial, econom-
ic, social, and environmental issues. The
most intractable include:
■ the extent to which alternatives to dams
are viable for achieving various develop-
ment goals, and whether alternatives are
complementary or mutually exclusive;
■ the extent to which adverse environ-
mental and social impacts are acceptable;
■ the degree to which adverse environ-
mental and social impacts can be avoid-
ed or mitigated; and
■ the degree to which local consent should
govern development decisions in the
future.
One of the central problems - and certainly
one of the main causes of stalemate in the
debate - is the lack of mutual trust between
the key parties involved. For opponents,
dams promoters too often agree to new
policies and guidelines, but fail to comply
with them.
Toward the establishment of
the WCD and its mandate
T he W C D can trace its roots back to the
origins of the dams debate. In addition to
the debate, two other related factors painted
the backdrop to its conception. T he first is
the accelerating shift in accepted notions of
the appropriate relationship between the
State and its citizens. T he second is the
increased recognition of the negative
environmental and social out-
comes experienced with large
dams. The result has been
growing controversy and conse-
quent delays in development
decisions.
I n C hapter 7, the section on
development trends explores the
shift in public support away from
centralised decisions often taken on the
basis of abstract notions of the greater
common good. Instead the public is focusing
more sharply on notions of equity in the
distribution of the costs and benefits of
development and participation in decision-
making.
G rowing disaffection by many groups in
society with the way decisions are taken,
with the distribution of costs and benefits,
and with compliance and recourse mecha-
nisms has provoked growing resistance to
large dams and escalating tension and
conflicts around individual dam projects.
W hile much of this conflict has centred on
the developing world, it nevertheless strikes
at the dams industry as a whole. Because
many of the most appropriate dams sites in
One of the central
problems - and certainly
one of the main causes
of stalemate in the
debate - is the lack of
mutual trust between
the key parties involved.
The Report of the World Commission on Dams
25
Chapter 1
By the early 1990s, it
was becoming dear that
the cost of controversy
couid seriousiy affect
future prospects for
dams and staii efforts to
finance ottier non-dam
water and energy
development projects to
serve rurai or urban
communities.
the developed world have already been
exploited, the future of the industry lies
principally in the developing countries,
whether the industry itself is based there or
in the developed countries. Linked to this
are considerations about the image of
international companies, their standing in
the community, their relationship with
shareholders and their reputation for corpo-
rate social responsibility
New approaches are not always well re-
ceived by developing country governments.
T hey often see them as a case of developed
countries, having benefited from cutting
corners themselves, turning to insist that
developing countries meet
higher standards H owever, to
obtain international financing -
public or private - developing
countries find themselves
having to comply with new
approaches, norms and policies
asa condition of financing or
partnership.
T he net effect of opposition and
the controversy over outcomes
has been to increase the level of
risk associated with projects -
especially those that fail to
recognise the need for a change in the way
things are done. This has increased delays
on dam projects in cases where controversial
elements are contested in the courts. Both
these factors directly or indirectly increase
the costs of dams.
By the early 1990s it was becoming clear
that the cost of controversy could seriously
affect future prospects for dams and stal I
efforts to finance other non-dam water and
energy development projects to serve rural
or urban communities. T he stalemate did
not benefit governments, dam builders.
communities or the environment, as no
actions or investments were considered
attractive given the ongoing conflict. A new
way had to be found.
T he need of both dams proponents and
opponents to negotiate a new, agreed basis
for assessing options and for planning,
deciding, implementing and operating them
- created the conditions for setting up the
W C D and giving it a mandate.
Beyond these general considerations, several
specific milestones mark the road leading to
theestablishment of theWCD. These
include:
■ The 1992 M orse report. jhisvvasan
i ndependent re/i ew of the Sardar Sarov-
ar project, commissioned by the World
Bank as a result of growi ng controvert
over Bank funded projects and criticism
of these proj ects at g'assroots I e/d and
i nternational ly. I nstead of temperi ng the
controvert, the M orse report fuel led
deep cri ti ci sm of the Worl d Ban k's
internal decision- making.
■ The M anibeli Declaration, signed in
J une 1994 by 326 activist groups and
NGO coalitionsfrom 44 countries,
calling among other things for a morato-
rium on W orld Bank funded large dams
until a comprehensive, independent
review of all Bank funded dam projects
had been conducted."
■ T he 1996 report of the Worl d Bank's
O perati ons Eval uati on Department
(OED)." An internal review of the
performance and i mpacts of a sampi e of
50 Bank funded largedams. Thisdesk
study obsrved that 90% of dams re-
viewed met the Bank's standards for
reffitti ement at the ti me they v\ere bui 1 1,
but 75% fai I ed to meet the Bank's most
recent standards A nother i mportant
26
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
finding was tliat proper mitigation of tlie
adverse environmental and social
impacts of most of the dams reviewed
would have been feasible without com-
promising the economic feasibility of the
projects. T he report and the process by
which it was prepared were highly
criticised bytheNGO community
■ The soul-searching was not confined to
the development finance community
Professional water and energy develop-
ment associations also began assessing
the causes of the growing controversy
and reaching conclusions on what
needed to be done. T he I nternational
Commission On Large Dams (ICO LD)
published its Pos;t/on Paper on Dams and
the Environment in 1997.^= Sinilarlythe
I nternational Commisaon on I rrigation
and Drainage (I CI D) initiated a process
that resulted in a major statement, T he
R ole of D ams for I rrigation, D rainage and
Flood Control, in 2000."
■ The NGO comnxinityv\asalso active in
gatheri ng case materi al on experi ence
wi th I arge dams and drawi ng conci usi ons
from it. Bui I ding on Goldsmith and
H i Idyard's 1984 report. Silenced R ivers by
Patrick M cC ul ly of the I nternational
Rivers NetvvDrk, published in 1996,
depicts a particularly bleak record of the
social and environmental impacts of
dams and thei r underl yi ng pol i ti cal
di mensions
By 1997, suspicion and mistrust betv\een
proponents and criti cs of I arge dams threat-
ened to domi nate and undermi ne wi der
discussion needed to reach ag'eementson
ways to i mprove access to v\0ter and energy
services In response to this the World Bank
and the World Conservation U nion
(lUCN), a^obal unionof more than 800
governments government agencies and
N G Os - sponsored a meeti ng between the
champions and the critics of large
dams in Gland, Switsrland in
April 1997. WhiletheGland
workshop was focused on bring-
i ng a range of opi nion around the
tabi e to di scuss the i mpl i cati ons
of the World Bank/0 ED re/iew
of 50 Bank funded dams it found
sufficient common ground to set
in motion the process that led to
the formati on of the W C D .
The Gland workshop
brought together 39
participants representing
governments, the private
sector. International
financial institutions, civil
society organisations,
and affected people in a
balance later mirrored in
both the WCD and the
Stakeholders Forum.
T he G I and workshop brou^t
together 39 parti ci pants representi ng
governments the private sctor, interna-
tional financial institutions civil society
organisations and affected people in a
balance later mirrored in both the WCD
and the Stakehol ders Forum. I n addi ti on to
assessing the O ED report, theyaddressd
three issues
■ C ritical advances needed in knowledge
and practice in relation to energy and
water resources management.
■ M ethodologiesand approaches required
to achieve these advances.
■ Proposals for a follow-up process involv-
ing all key players.
The workshop participants identified key
issues relating to the social, environmental,
technical, and financial aspects of dams that
had to be addressed in reviewing the role of
dams and their alternatives in sustainable
development. They also formed an Interim
W orki ng G roup composed of workshop
participants and entrusted this group to
establish the WCD. This task proved to be
long and complex, in part because of the
decision of the working group to consult all
of the key stakeholder groups at each step,
and also because of the time needed to build
confidence in the good faith of all the
parties.
The Report of the World Commission on Dams
27
Chapter 1
TheWCD was finally announced in Febru-
ary 1998, and began its work the following
M ay, under the C hairmanship of Professor
Kader Asmal, then South Africa'sM inister
of Water Affairs and Forestry and later
M inister of Education. Its 12 members were
chosen through a global search process to
reflect regional diversity expertise, and
stakeholder perspectives. The Commission
was independent, with each member serving
in an individual capacity and none repre-
senting an institution or a country
A s defined by the G land workshop, the
C ommission's two objectives were to:
■ Review the development effectiveness of
large dams and assess alternatives for
water resources and energy development.
■ Develop internationally acceptable
criteria, guidelines and standards where
appropriate, for the planning, design,
appraisal, construction, operation,
monitoring and decommissioning of
dams.
The dual objectives are deliberate, reflecting
to some extent the priorities of the different
participants in the dams debate. T he cham-
pions of large dams, while wishing to draw
useful lessons from the review of past
experience, tend to lay the emphasis on
practical tools that will help overcome the
controversy and set a foundation for more
predictable scenarios. T he opponents of
large dams, on the other hand, tend to
underscore the importance of the review,
convinced that it will reveal the depth and
persistence of the negative impacts that
dams have caused. T hey want to see evi-
dence that dams can be an acceptable
option before giving too much attention to
developing guidelines for building better
dams in the future.
Fulfilling the WCD
Mandate: Process and
Methodology
To respond to both parts of the mandate it
was given in G land, the C ommission began
by developing an analytical framework and
work programme to assemble a consolidated,
shared knowledge base on the worldwide
experience with large dams, that:
■ is grounded in the accepted international
norms of sustainable and equitable
human development;
■ aims to explore the key themes at the
centre of the dams debate, especially
those that are unresolved; and
■ compares the planned performance and
expectations of dams with the actual
experience after project completion.
The Commission used both quantitative
and qualitative methods to objectively
evaluate and answer the key questions
posed.
It did not set out to judge decisions on dam
projects from 50 or 100 years ago, but rather
to learn lessons about the outcomes of dams
and how these lessons could work to change
or affect outcomes in the future.
In order to ensure a solid foundation of
material on which to base its analysis and
conclusions, the WCD commissioned,
organised or accepted:
■ in-depth C ase Studies of eight large dams
on four continents, together with two
country review studies;
■ a C ross-C heck Survey of large dams
located in 52 countries across the globe;
■ 17 T hematic Reviews grouped along five
dimensions of the debate;
■ four regional consultations; and
28
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
■ over 900 submissions from interested
individuals, groups and institutions.
Recognising the value of the perspectives
provided by representatives attending the
G land meeting, in the first few months of its
work the C ommission decided that the
group should be retained as a consultative
body for the Commission process, to be
known astheWCD Forum. It was composed
of a mix of former Reference G roup mem-
bers from the G land meeting, and new
stakeholders and interest groups. In select-
ing the new members of the Forum the
W C D was guided by criteria such as rele-
vance, balance and representation of a
diversity of perspectives and interest groups.
T he Forum offers a consultation model that
works at a somewhat different level than
other forms of consultation. It has around 70
members and operates as a 'sounding board'
for the work of the Commission. It is
primarily a mechanism for maintaining a
dialogue between the Commission and the
constituencies of Forum members.
Since the C ommission was facilitating
debate on the complex issue of the develop-
ment effectiveness of dams, input derived
through consultation with these constituen-
cies was essential for the understanding and
acceptance of the C ommission's final
products. T he Forum was one means of
achieving these objectives.
C hapter 10 looks ahead to the dissemina-
tion and the adoption of the C ommission's
recommendations. It provides suggestions
on the post-C ommission role of stakeholder
groups such as the Forum.
Developing the knowledge
base
T he C ommission set out to develop a
knowledge base that would give it access to
the full range of issues and perspectives
concerning large dams. The goal was to go
beyond the realm of experts and intergovern-
mental processes to include constituencies
with very different entry points into the dams
debate. T he process was designed to offer the
opportunity for dialogue among the different
interest groups, while providing a solid founda-
tion for theCommission's findings.
The WCD Process
Establishment of Commission
Worl< Programme developed and Secretariat established
Activities
Thematic Review s • Case Studies
ross-Checl< Survey . Regional Consultations
Knowledge Base|
Synthesis of Work Programme Results
|l« Review of Development Effectiveness of Larg
Frameworl< for 0 ptions Assessment
'"• Criteria and Guidelines
;ults^
Global Dissemination Process
Global dissemination of findings
and publications
The Report of the World Commission on Dams
29
Chapter 1
M ain elements of the work
programme
The Commission lias based its report on a
syntliesisof information on past experience
across all elementsof the WCD work
programme. A brief description of these
main elements follows. Further details on
the methodology are shown in Annex III.
Case Studies and Country Studies
T he C ommission undertook two case studies
in 0 EC D countries and six in developing
countries. It prepared country
review studies for India and
I" _ China, and an issue paper for the
Russian Federation and Newly
I ndependent States. T he case
studies provide a thorough
understanding of the challenges
and dilemmas associated with
specific dams set in the context
of the development situation in
specific countries, and the river
basins. They were implemented
in stages with stakeholder participation.
The Commission followed a standard
framework for each case study, based on the
model developed by the Secretariat. A t the
core were six questions:
■ W hat were the projected versus actual
benefits, costs and impacts?
■ W hat were the unexpected benefits,
costs and impacts?
■ What was the distribution of costs and
benefits - who gained and who lost?
■ How were decisions made?
■ Did the project comply with the criteria
and guidelines of the day?
■ How would this project be viewed in
today's context in terms of lessons learned?
These questions served a much wider
purpose than merely orienting the case
studies. They helped to shape the global
review, the element of the work programme
used by the Commission to evaluate the key
issues in the overall debate. T he C ommis-
sion also used the studies to focus more
specifically on the development effective-
ness issue from the viewpoints of the stake-
holder group for each case study
Cross-Check Survey of dams
T he C ommission developed the C ross-
C heck Survey to extend the analysis provid-
ed in the case studies to target a broader set
of dams. C ompleted survey forms were
received for 125 dams in 52 countries. The
125 dams included the case study dams,
additional dams from the case study basins,
dams from existing databases and a random
selection of dams from the larger population
to contribute to the overall diversity of the
sample. T he analysis aimed to detect broad-
er patterns and trends in performance and
decision-making relating to dams.
A variety of dams of different types (storage,
run-of-river); ages (the 1930's through the
1990's), functions (water supply, irrigation,
power, flood management, recreation and
other); ownership structures (public, corpo-
rate and private); and regional locations
were included in the survey. Data was
verified by an internal review and by sub-
mitting contested and randomly selected
data sets for review by constituencies other
than the dams owners and operators. A nnex
1 1 1 sets out the methodology and summary
statistics. Figure 1.10 shows the location of
the case study dams and cross-check survey
dams.
Thematic Reviews
A total of 17 Thematic Reviews and some
130 papers were commissioned to address
five major areas of concern identified in the
WCD strategy and objectives paper:
30
Dams and Development: A New Framework for Decision-Making
Chapter 1
South Asia Consultation,
Colombo, December 1998
Latin America Consuitation, Sao
Pauio, August 1999
East and South-East Asia
Consultation, Hanoi, February
2000
■ social and distributional
issues;
■ environmental issues;
■ economic and financial
issues;
■ options assessment; and
■ governance and institutional
processes.
The Thematic Reviews provided
the baseline information, analy-
sis and recommendations on
issues that cut across the central
elements in the large dams
debate. T hey consider past and
current experience, as well as the
forward-looking context, by
synthesising the state-of-the-art
knowledge, practices and key
viewpoints on each topic.
Within limits set by available
resources and the Commission's
schedule, the level of effort
involved in preparing these
review papers varies according to
the complexity of the issue and
the level of controversy sur-
rounding it. Preparation of the
review papers included setting
up panels and procedures for
broader peer review. This helped
to bring together a wide spec-
trum of perspectives and ap-
proaches on the topic and to clarify the
areas of potential agreement, and persistent
disagreement, on highly controversial issues.
Regional Consultations
Over the course of two years, the Commis-
sion held four regional consultations, one
each in South A sia, A frica and the M iddle
East, Latin A merica, and East and South
East A sia. For each of the regional consulta-
tions, governments and non-government
organisations, project-affected communities,
financial institutions, industry and private
sector representatives were invited to submit
proposals on all aspects of their experience
with dams and alternative options, and with
water and energy resource development.
0 ver 30 presentations were made at each
consultation and participants engaged in
debates on the issues raised. T hey gave the
Commission a unique and unprecedented
exposure to the many voices and perspec-
tives in the dams debate in a number of
countries and regions.
T he C ommission also had the benefit of
listening to NGO and affected community
presentations at two hearings organised by
NGOsfrom Europe and from Southern
Africa, as well as obtaining a wider range of
inputs through attending and participating
in meetings, workshops and conferences
organised by a wide range of organisations
and networks.
Africa-M iddle-East Consultation,
Cairo, December 1999
32
Dams and Development: A New Framework for Decision-Making
Water, Development and Large Dams
Endnotes
1 World Commission on Water in the 21st
Century, 2000. Other examples of strategic
initiatives in water include the U nited
N ati on s Comprehensive A ssessm en t of
Freshwater Resources of the World, the
United Nations Food and A griculture
Organisation A quastat programme, and the
World Water Vision conferences.
2 Gleick, 1998, p43.
3 UN, 1999, pi; also Raskin et al, 1998.
M edium projection in 2050 was 8.9 billion.
4 UN, 1998, p2-29. In 30 years the largest
population growth is projected to be in urban
conglomerations; the 10 largest population
centres in descending order of size would be
M umbai (Bombay), Shanghai, Chennai
(Calcutta), Beijing, Delhi, Karachi, Tianjin,
M etro M anila, Jakarta, and Dhaka.
5 IPCC, 1999. Purchasing power parity (PPP)
uses accounting exchange rates to compare
or add country economic data and avoid
distortions introduced by market exchange
rates. In 1995 world Gross Product reached a
figure of U S$33.4 trillion at purchasing
power parity (PPP).
6 Raskin et al., 1998, p9. OECD Data; 78% at
market prices and 55% at purchasing power
parity
7 Shiklomanov, 1998 in G leick 2000, p51-54;
Raskin et al, 1995; based on U nited N ations,
World Bank, and World Health Organisation
data.
8 Raskin etal, 1995.
9 Gleick, 1998, p44-45.
10 Seckler etal, 1998.
11 Shiklomanov, op cit.
12 WRI et al, 1998, p304-305.
13 Shiklomanov, op cit. M unicipal and industri-
al use increased from 17 to 28% of fresh
water withdrawals globally between 1950 and
1990.
14 Van Hofwegen and Svendsen, 2000.
15 Raskin et al, 1995, p9; Countries are
considered to be water stressed when the
annual renewable water supply drops below
1700 m^ per capita, and water scarce when it
drops below 1000 rri.
16 Raskin etal, 1998.
17 Brown and Halweil, 1999.
18 WCD Thematic Review 1 1.2 Global Change.
19 Schnitter, 1994; McCully, 1996.
20 Zhang 2000, W C D Reg onal C onsul tati on
Paper.
21 I COLD, 1998; seealso Annex V; Compila-
ti on of esti mates of the number of dams i n
the mai n dam bui I di ng countri es suggest
there may be as many as 48 000 1 arge dams
22 WCDThematicReviewlll.2Financing
Trends
23 WC D Thematic Review I V.2 Irrigation
O pti on s Yi el ds from i rri gated areas are on
average doubl e that of rai nfed ag'i culture,
and are general lyhi^er on land irrigated by
g'ound water than on land irrigated with
surface water.
24 Cosg'oveand Rijsberman, 1999, p40.
25 Ibid.
26 TheWCD IndiaCountryStudynotedthat
the official figures of the Central Water
Commission indicate that 30% of irrigated
land is supplied with water by dams; howev-
er, the study also suggested an alternative
figure of 10%.
27 Shiklomanov, op cit.
28 Roo, 2000, ppl-31; M cl ntosh and Ynigiez;
1997, pl89.
29 I EA, 2000. The UN esti mates that 2 bill ion
people have no access to electricity Electric-
ity consumption per capita varies by more
than a factor of 10 among different regons of
the worl d: from approxi mately 10 000 kW h/
yearin North America to I ess than 1000
kWh/year in Africa.
30 IEA,1998.
31 IFRCRCS, 1998.
32 Berz; 2000.
33 I COLD, 1998.
34 Lu, 2000.
35 Ra/enga et al, 1998. The WRI 's 1998 study
of the conditi ons of the maj or watersheds i n
the world focused on 150 watersheds,
representi ng 55% of the worl d's I and area.
36 Berger etal, 2000.
37 ICOLD, 1998; WCD Analysis
The Report of the World Commission on Dams
33
Chapter 1
38 Wolf, 2000, Contributing Paper for W CD
Thematic Review V.3 River Basins.
39 Wolf et al, 1999.
40 Lecornu, 1998.
41 A considerable portion of the aggregate storage
of large dams may be for non-consumptive
hydropower releases. A nalysis of all large dams
in the ICO LD Register (1998), but excluding
single purpose hydropower dams, shows 4 373
km^ of desigied storage capacity.Thisdataset
excludes many of the large dams in China,
estimated to provide 451 km? of storage (IJHD,
1999)
42 Kelleretal, 2000, p6-7.
43 Revengaetal, 1998.
44 T he Worl d Bank based on the revi ew of
resetti ement experi ence esti mated that
between 1986-1993, an estimated 4 million
peopi e were di spl aced an n ual I y by the 300
large dams that entered on an average into
construction every year. In the I ate 1980s
some 10.2 million people were officially
recogiised as "reservoir resetti ers;' in China.
This figure would be substantial lyhi^er if it
i s offi ci al I y updated to i ncl ude new fi gures of
population resettlement. For example, dams
and reservoi rs al ready bui 1 1 on the tri butari es
and the mai n course of the Yangtffi River
alone have caused relocation of at least 10
million people. In India the esti mates of
peopI e di spl aced due to I arge dams vary from
21 million to 33 million people. Dams
account for 34% of al I peopI e di spl aced by
devel opment proj ects i n C hi na ( di spl ace
ment due to ci ty constructi on i ncl uded i n
the total), 77% in India (urban displacement
not included to total displaced) and 65%
among the proj ects funded by the Worl d
Ban k i nvol vi ng di spl acement. A 1 1 these
figures are at best onlycareful estimations
and certainly do not include the millions
who may have been di spl aced due to several
others aspects of the proj ects such as canal s,
powerhouses, project infrastructure and
associated compensatory measures such as
bi o-reserves etc. ( See end notes 7 to 10 i n
chapter 4 for references to thi s endnote.)
45 Fox and Brown, 1998b.
46 World Bank, 1996a, p77.
47 J i ng 1999, C ontri buti ng Paper for W C D
Thematic Review 1.3 Displacement, p2.
48 Wang no date.
49 WCD Thematic Review 1. 3 Displacement.
50 ADB, 1999b, pl-2.
51 Fernandesand Paranjpye, 1997, pl5-17.
52 World Bank, 1996a, p90-92.
53 WCD KaribaCaseStudy
54 The protestors i ncl uded both those to be
resettled and farmers who were supposedly
beneficiaries of the Bakolori irrigation
scheme A ccordi ng to the N i geri an govem-
ment, 23 protesters v\ere shot dead; unofficial
esti mates put the death tol I at more than 126.
55 Stewart et al, 1996; World Bank, 1996b;
Chen, 1999, WCD Regonal Consultation
Paper. At the WCD Regonal Consultation
at Sao Paul o one of the survi vors narrated
howhiswifeand children were shot dead
before his eyes when he merely enqui red of
the authorities 'where do you want us to
move to?" The answer came i n the form of
four rapid bullets
56 M cC ul ly 1996, p281-282.
57 Goodland, 2000.
58 Udall, 1998, p392.
59 Gray 1998, p269-270.
60 M oore and Ski ar, 1998, p286, WCD Submi s-
sion eco048.
61 Fox and Brown, 1998a, p489.
62 M orse and Berge, 1992.
63 Manibeli Declaration, 1994.
64 OED, 1996a and 1996b.
65 I COLD, 1997.
66 ICID, 2000.
34
Dams and Development: A New Framework for Decision-Making
Part One:
The WCD Global Review of
Large Dams
he World C ommission on D ams was charged with
reviewing the d&/elopment effectiveness of large dams
and assessing alternatives for water and energy resources
management Part 0 ne of the report contains the results of
our G lobal R &/iew of large dams 1 1 consists of five chapters
m C hapter 2 provides the findings of tlie C ommission's independent
review of tlie teclinical, financial and economic performance of
large dams.
■ Chapters examines the environmental performance of large dams,
including ecosystem and climate impacts.
■ C hapter 4 evaluates the social performance of large dams, looking
especially at the displacement of people, and the distribution of
gains and losses from dams projects.
■ C hapter 5 assesses the scope of various alternatives to large dams
for meeting the needs of irrigation, drinking water, electricity and
flood management in terms of both the opportunities they provide
and the obstacles they face.
■ C hapter 6 considers the planning, decision-making and institu-
tional arrangements that guided the development of water and
energy resources and the selection, design, construction and
operation of dams.
Chapter 2:
Technical, Financial and
Economic Performance
Any development project -
particularly a large
infrastructure one such as a large
dam - is conceived, planned, and
designed to achie/e a set of objectives
that will enhance the welfare of
soci^. I n assessing the performance
of large dams the C ommission first
assessed the dams in theWCD
Knowledge B ase against the targets sef
by those planning and designing the
facilities. T hese projections of costs
and benefits provided the rationale and
basis for project approval and funding
In most cases, project proponents set
firm physical, financial, economic
Chapter 2
The emerging message
from the WCD
Knowledge Base is that
project selection, design,
and operations couid be
improved substantialiy
relative to past
performance.
and, increasingly, social and environmental
performance targets. TheCommissionhas
also examined past experience with the
benefit of hindsight, that is, within the
context of presently available information.
H ere the Knowledge Base is used to assess
the impacts of large dams that were not
explicitly targeted and planned for - such as
cost recovery and adverse impacts on
indigenous peoples - but that are important
factors in assessing the contribution of large
dams to development. This chapter begins
the analysis with a focus on technical,
financial and economic performance.
The evidence and findings presented below
indicate that there is considerable scope for
improving the selection of projects and the
operation of existing dams, even prior to
consideration of the social and environmen-
tal impacts. T he performance of large dams
in termsof achieving technical, financial,
and economic targets is marked by a high
degree of variability with a considerable
portion of dams failing to deliver on their
overall objectives and many falling short of
specific targets. Still, a substan-
tial number have met or
exceeded their targets and
continue generating benefits
after 50 years or more. N one-
theless, the emerging message
from the W C D K nowledge
Base is that project selection,
design, and operations could be
improved substantially relative
to past performance.
Structure and
Methodology
T he analysis presented here draws on several
independent samples of the experience with
large dams, oriented along different axes and
supplemented by C ommissioners' personal
experiences. The information on dams in
the W C D Knowledge base is reported first.
Results of the C ross-C heck Survey are used
to indicate the direction, variability and
extent of broad trends and patterns. T hese
broad findings are then supplemented by
experience captured in Case Studies,
Thematic Review papers, contributions to
the Regional Consultations, and submis-
sions. The Case Studies, in particular, are
used to provide indicative illustrations of
these broad findings and their immediate
causes. Existing literature and perspectives
are then cited to verify the original findings,
and also to clarify new directions emerging
from the C ommission's work.
The performance indicators for the imple-
mentation phase of dam projects are the
same for dams with different purposes. T hus
this section begins by reporting on the
degree to which dams have met targets for
capital costs of projects and proceeded
according to schedule. It then proceeds
sector-by-sector to provide insight into the
relative performance of dams built and
operated for different purposes. Large dams
built for irrigation, hydropower, water supply
and flood control have separate objectives,
involve different components, respond to
different markets and are operated in
different ways. T he inquiry is driven by
consideration of the delivery of benefits
measured in physical terms (such as water,
power and crops) and then in terms of
financial and economic profitability W here
relevant, sectoral performance on costs and
time schedules is brought into the analysis.
T he extent of cost recovery is also discussed,
as it provides a window not just on financ-
ing issues but also on the effect of subsidies
on the efficient allocation and use of re-
sources. In addition, it informs the issues of
distribution and equity treated in C hapter 4.
38
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
T he secondary economic impacts generated
by large dams (such as multiplier effects) are
also treated in Chapter 4. Of course, many
dams fulfil not just one but a number of
purposes; these multi-purpose dams are
examined in an additional section and their
performance is contrasted with that of
single-purpose dams. Finally the sustainabil-
ity of dam operations is considered by
reviewing evidence on dam safety sedimen-
tation, waterlogging and salinity
Construction Costs and
Schedules
During the implementation period of a dam
project - that is during construction - two key
performance i ndicators are the extent to
which projects come in on time and on
budget. Largedamsin theWCD Knowledge
Base have demonstrated a marked tendency
towards schedule delays and cost overruns.
Capital costs of large dam
projects
A ssessment of actual versus predicted
performance on capital costs is important for
a number of reasons.^ First, dam projects are
typi cal I y approved on the basi s of a f i nanci al
budget for the i nvestment. I f they end up
costi ng substanti al ly mre than expected,
additional funds have to be found. As large
dams and thei r assDciated i nfrastructure may
cost billionsof dollars- three of the Case
Study dam compi exes cost over $6 bi 1 1 i on
each - fi nanci al overruns have i mportant
conaquencesfor public and private budget-
ing. Second, projects also often derive tariff
charges baad on cost esti mates 93 under-
esti mates will undermine financial viability
or efforts to recover costs
Cost performance data in theWCD Knowl-
edge Base suggest that I arge dam proj ects
often incur substantial capital cost overruns
The average cost overrun of the 81 1 arge
dam proj ects included intheWCD Cross-
C heck Survey was 56%. Vari abi I i ty was
hi^. Of the total sample, one-quarter of the
damsachie/ed less than planned capital cost
targets whi 1st al most three-quarters of the
dams exhi bit capital cost overruns (see
Figure 2.1).
Within the Cross-check sample, nxilti-
purpose dams demonstrated hi ^ vari abi I ity
in performance compared with
si ngl e purpose damsj rangi ng
from as I ow as 22% underruns to
180% overruns of planned cost
targets Furtherrrore, the average
cost overrun v\as 63% for the 45
nxiiti- purpose projects- three
ti mes that of the si ngl e- purpos
hydropov\er dams i n the sample.
Comparatively the cost overrun
for si n^ e- purpose proj ects was greatest for
water supply dawe, with al I but one project
showi ng a 25 to 100% overrun and the
average for thi s category bei ng twi ce that of
Cost performance data
in the WCD Knowledge
base suggest that large
dam projects often incur
substantial capital cost
overruns.
Figure 2.1 Cost overruns on large dam projects
Global sub-sample: 81 dams
24
22
20
18
16
14
12
10
8
6
4
2
0
25%
20%
15%
10%
5%
0%
E
"D
o
OJ
O)
(D
c
OJ
0)
undermn — I — overrun
5?
9>
t8>
•7
V V
% actual to planned capital costs (US$ Nominal)
I
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
39
Chapter 2
single-purpose irrigation or hydropower
dams. Interestingly, performance was worst
in the sub regions of Latin A merica, Europe,
C entral A sia, and South A sia, with cost
overruns averaging 53%, 69%, 108%, and
138% respectively
T he W C D C ase Studies - viewed as a sub-
sample separate from the C ross-C heck
Survey - suggest a more marked tendency
towards cost overruns. Of these, only Stage
1 of the Karl ba dam (built in the late 1950s)
came in on target (a 3% underrun). Note
also that the experience is not limited to
very large billion-dollar projects, as the four
smaller, million-dollar projects in the
G lomma and Laagen basin in the W C D
C ase Studies cost some 60 to 185% more
than projected. T he Pak M un dam in
Thailand, a medium-size hydropower dam
financed by the W orld Bank and commis-
sioned in 1994, had a 68% overrun. ^
The causs of cost vari ati ons fal I i nto four
categories
■ poor development of technical and cost
estimates and supervision by sponsors;
■ technical problems that arose during
construction;
■ poor implementation by suppliers and
contractors; and
■ changes in external conditions (econom-
ic and regulatory).'
Part of the di ffi cul ty i n de/d opi ng accurate
proj ecti ons for constructi on costs of I ange
dams isthat the geotechnical conditionsat
a site (the qual ity of the rock for the founda-
ti ons of the maj or structure and for tunnel s) ,
and the qual ity of the construction materials
cannot be determined precisely until con-
structi on i s under vvay. D i scovery duri ng
constructi on of I ess favourabi e si te condi -
ti ons than those assumed i n the engi neeri ng
designs and construction plans can be a
significant contributor to cost overruns and
del ays in time schedules Despite being a
common factor i n causi ng overruns I ittle to
no provisions have been made to i mprove
the estimates in this regard.
Figure 2.2
Average cost
overruns for large
dams
Average for all*'''
World Bank HEP''
World Bank MP''
IDB'
ADB=
AfDB^
IRN List'
WCD Case Studies'
WCD Cross-Check'^'
WCD Cross-Check: India only
J 54%
J 27%
39%
45%
^ 16%
]2%
J 247%
J 89%
52%
50 100 150 200
% capital cost overruns (US$ Nominal)
] 235%
250
300
Sources: 'BaomsndBesdnt-Jcrm 1998; ' OED, 1996ai IDB, 1999; 'Lagven, 2000; 'AiDB, 1998; 'McCdIy,
1999 ecoOei- 'WCD ThBnaticRe/ie/vlll.lEancirics ' WCD CroBsClneckSun/E!/
Notes *Exdude5Ca3e9ucfyandlndadarm **We^teda^a^ba3edainLsrb3-cfdarrBineadisarrj:le HEPref&sto
hy&opcwe-prqectsandMP tonniti-purpoBeprqecis
40
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
A dditional estimates of cost performance
gathered or submitted as part of the W C D
process include an Inter-American Develop-
ment Bank review of its portfolio of large
dam projects from 1960 to 1999. T he results
suggest an average cost overrun of 45% (see
Figure 2.2) ^ In a si nil ar exercise, theWCD
re/iev\ed the portfol io of large dam con-
struction projects financed by the A si an
De/dopment Bank (ADB) betv\een 1968
and 1999.5 Qf the 23 completed ADB large
dam proj ects wi th aval I abl e data, there vvas
an average cost overrun of 16%. This masks
consi derabi e vari abi I i ty as the mej ori ty of
large damsin theADB sample actually had
cost undernjns The I nternational Rivers
Netv\ork (IRN) submitted a list of 14 large
dams with cost performance data that
showed a 242% overrun, with eight projects
in India dominating the results with an
average overrun of 262%.' The resultsfrom
these I atter dams^ as v\el I as the resul ts for
the I ndian dams i n the C ross-C heck (235%
overrun) confirms the serious overruns
reported i n the I ndia Case Study'
T he data on cost performance reported by
WC D confi rm the results found i n other
studies Perhaps the most cited study is that
of 70 World Bank fi nanced hydropov\er
proj ects comrri si oned betv\een 1965 and
1986, vvhere costs at compi dti on v\ere on
avera^ 27% hi ^er than esti n^ed at apprai s
al . T hi s compared to average cost overruns
of j ust 6% for a sampi e of 64 thermal pov\a'
projects and an 11% overrun for a sample of
over 2 000 devd opment proj ects of al I
types" A n analysi s of the data on cost
i ndi cators for 10 nxil ti - purpose dams i ncl ud-
ed i n the Worl d Bank O perati ons and
Evaluation Department's (OED) 1996 report
on largedamsyiddsan average cost overrun of
39%.' Finally al998rB/iewoflOprojectsby
the African De/dopment Bank (AfDB)
found an average cost overrun of only 2%."
The evidence gathered by WCD strong y
confi rms the vi ew that there i s a ^emati c
biastovvards underesti mation of the capital
costs of I arge dams- ' A gg'egati ng al I the
aforementioned samplesyiddsan average
cost overnjn for al I 248 dam proj ects of j ust
over 50% (or 40% without the dams from
the IRN list and the I ndi an Cross-check).
The implication isthat lar^ dams have
perfbrrred poorly rdativeto bud^ary targds
Poor prediction of inflation is often an
i mportant component of thes overnjns A s
a consquence, when the fi gures are adj ust-
ed for inflation, the overrun in terms of the
real economi c costs of the materi al s and
resources used i s I i kd y to be I ov\a" than that
reported here." For the 81 large
damsin the Cross-check sub-
sample the cost overrun as
measured in constant 1998 dollar
terms came to 21%, a significant
drop from the 56% cost overrun
obtai ned i n current dol lar
financial terms but still large
enough to significantly affect the
economi cs of these proj ects
Delays in commissioning
projects affect the
deiivery of services,
increase interest
payments and deiay
revenue generation.
Project implementation
scliedules
A second important indicator of perform-
ance during the implementation phase of a
large dam project is the extent to which
project time schedules are met. Delays in
the date at which a project is commissioned
lead to increases in interest accumulated on
funds borrowed for construction activities
and to delays in revenues accruing to the
owner from the completed project. For
consumers ddays mean additional periods of
not bd ng saved with dectridty or water.
Dda^thusaffect the ddivery of benefits as
wdl asthefinandai and economic perform-
ance of a project.
The Report of the World Commission on Dams
41
Chapter 2
T h e W C D K n owl edge B ase suggests a
marked tendency towards schedule delays
for large dam projects compared with the
planned time to implementation. Of the 99
projects included in the analysis of project
schedule performance in the C ross-C heck
Survey only half the projects came in on
schedule (see Figure 2.3). A pproximately
30% of the other half were delayed for one
or two years, and about 15% were delayed
between three and six years. Four projects
were delayed more than 10 years.
TheWCD Case Study dams also display a
range of results in achieving project sched-
ules. Stage 1 of Kariba dam came in on
schedule, whereas Tarbela took two extra
years to finish and A slantasfour. Following
the initiation of construction in the late
1970s, financing difficulties led to a nine-
year delay in thecaseofTucurui. This led to
much higher than expected payments of
interest during construction. N ot counting
interest the cost overrun was 51% but this
rises to 77% once the comparison includes
actual and predicted interest costs. Other
Figure 2.3 Project schedule performance
Global sub-sample: 99 dams
44
IT)
40
E
"D
36
O
32
0)
28
E
24
20
16
12
8
4
0
50%
E
40%
30%
20% 1
CD
CL
10%
0%
-1 01 23456
Years behind or ahead {-) of project schedule
Source: WCD C ross-C heck Survey.
factors that can lead to schedule delays are
late delivery to the site of essential equip-
ment, unrealistic construction schedules,
contractor and construction management
inefficiencies, labour unrest and protests and
legal challenges by affected groups.
The existing literature on large dams and
related projects confirms this finding: large
dams tend to be subject to significant
schedule slippages. A recent study of World
Bank financed hydropower projects reports a
28% delay on average. While this is a
considerable slip, it is no different than that
recorded in the same study for thermal
power projects (30%).^^
Irrigation Dams
Large dams and i rri gati on proj acts are a
nested st of sub-^ems i nvol vi ng the dams
as 93urce of supply, the i rri gati on system
( i ncl udi ng canal s and on-farm i rri gati on
application technology), the agricultural
^em ( i ncl udi ng crop producti on procesKs) ,
and the wider rural socio-economic ^em
and agricultural markets
Potenti al performance i ndi cators for I arge
dam i rri gati on proj ects i ncl ude:
■ physical performance on water delivery
area irrigated and cropping intensity;
■ cropping patterns and yields, as well as
the value of production; and
■ net financial and economic benefits.'^
Large i rri gati on dams i n the WC D
K nowl edge Base have typi cal I y fal I en
short of physical targets failed to recover
thei r costs, and been less profitable i n
economic terms than expected. The
secondary benefits of irrigation projects
were rarely specified as targets (these are
discussed later, in Chapter 4).
42
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
Irrigated area and cropping
intensity
Irrigation components of large dam projects
in theWCD Knowledge Base fell well short
of targets in terms of development of com-
mand area (and infrastructure), area actually
irrigated, and to a lesser extent the intensity
with which areas are actually irrigated. With
respect to the achievement of command
area targets, the C ross-C heck Survey
demonstrates a general pattern of under-
achievement, with almost half of the 52
dams in the sub-sample falling short of the
planned target (see Figure 2. 4). Poor
performance is most noticeable duri ng the
earl i er peri ods of proj ect I i fe, as the average
achi evement of i rri gated area targets com-
pared with what v\as planned for each
period i ncreased over ti me from around 70%
i n year fi ve to approxi n^d y 100% by year
30 (see Figure 2.5). Nevertheless a charac-
teristic pattern obsrved in the sample is
vari abi I i ty of performance between proj ects
I n particular, one-quarter of the projects
achieved I ess than 35% of their target
i rri gati on areas duri ng the fi rst fi ve years
T he 52 proj ects i n the survey sub-sampi e
I i kewi se underachi eve i n terms of croppi ng
Figure 2.4 Achievement of command area
I
Irrigation sub-sample: 52 dams
20
16
12
8
4
0
below target
above target
35%
30%
25%
20%
15%
10%
5%
0%
0°) 3°)
C'' c§i'
% actual maximum command area achieved to planned target
E
O
Source: WCD C ross-C heck Survey.
Figure 2.5 Actual irrigated area compared to planned targets overtime
200
175
150
"O
QJ
d
d
125
fD
Q_
O
100
Td
:j
tj
75
<
50
25
0
0
(n=no, of dams)
rrigation sub-sample
100% Target
10 20 30
(n=34) (n=23) (n=13)
Years from start of commercial operation
1 case
2 cases
•
•
3 cases
•
4 cases
•
5 cases
•
6 cases
40
(n=6)
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
43
Chapter 2
When compared with
larger projects in the
survey, danns with
heights less than 30
meters and reservoir
areas of less than
10 km^ tended to be
closer to the predicted
targets
intensity targets. H owever, cropping intensi-
ty performance comes closer to targets than
irrigation area development." Lessthan
half of the projects in the sub- sample
consistently achie/e or exceed planned
croppi ng i ntensi ti es from year one of i rri ga-
tion. Of the remainder, 20% achie/e less
than three-quarters of targets and the other
40% fall betv\een 75 and 100%.
W i th regard to croppi ng i ntensi ty there i s
I i ttl e di fference i n the average val ues for
si ngle and nxilti-purpos dams i n the survey
A dual val ues of maxi nxim i rri gated area
achi e/ed by si n^ e- purpose i rri gati on
proj ects are consi stenti y better on average
by a marg n of around 10%. Si ngle- purpose
i rri gati on schemes al so show more of a
spread i n the val ues around the average,
with one-quarter of the 21 si n^e- purpose
proj ects achi e/ing more than 115% of
planned targets
When compared with larger projects i n the
survey dams with heists I ess than 30 meters
and reservoir areas of lessthan 10 kmf
tended to be closer to the predicted targets
and demonstrated I es vari abi I i ty for comi-
mand area development, actual
i rri gated area and actual crop
intensity All projects below
90% of area and i ntensi ty
targets v\ere larger than 10 kmi
and higher than 30 meters.
TheWCD Case Studies corrob-
orate the results of the C ross-
C heck Survey and display a
similar breadth of results with
respect to irrigation area and cropping
intensity targets. In the case of Grand
C oulee, commissioned in 1941, only about
half of the predicted area in the Columbia
Basin Project was eventually developed; the
same can be said of the G ariep dam on the
Orange River in South Africa. A sTarbela
dam is an integral part of the Indus Basin
Irrigation System (IBIS), it is not possible to
specify the achievement of area targets.
H owever, the amount of water released for
irrigation from Tarbela has exceeded predic-
tions by 20% over its 25-year life. T his is
mainly due to a lower-than-expected rate of
reservoir sedimentation. Shortfalls of 9 to
60% in achieving cropping intensity targets
are observed in the provinces of Punjab and
Sindh. Meanwhile, the India Case Study
reports that the level of under-utilisation of
irrigated areas is between 13 and 25%.
In the case of theAslantasdam in Turkey
96% of the irrigated area was developed by
the end of the implementation period, but
this has now fallen to 87% due to the
conversion of agricultural land to urban and
industrial purposes. A dditional irrigation
area foreseen under the original basin plan
has subsequently been implemented through
other projects, although delayed from
original projections. C ropping intensity has
increased from 89% to 134% of the target,
but such figures mask a return to growing
wheat, a crop that requires little irrigation
in Turkey
The under-achievement of targets for
irrigated area development from large dams
has a number of causes. Institutional failures
have often been the primary causes, includ-
ing inadequate distribution channels, over-
centralised systems of canal administration,
divided institutional responsibility for main
system and tertiary level systems, and
inadequate allocation of financing for
tertiary canal development. Technical
causes include delays in construction,
inadequate surveys and hydrological assump-
tions, inadequate attention to drainage, and
44
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
over-optimistic projections of cropping
patterns, yields and irrigation efficiencies,
including the late realisation that some
areas were not economically viable. A Iso, a
mismatch between the static assumptions of
the planning agency and the dynamic
nature of the incentives that govern actual
farmer behaviour has meant that projections
quickly became outdated.
Performance data on irrigation projects as
reported elsewhere support the original
findings of the Commission, although these
are not solely linked to large dams. A n A DB
evaluation of 35 irrigation projects found
actual cropped areas generally at 60-85% of
appraisal estimates, with only four exceeding
targets. A World Bank study of sa/en
irrigation projects found all but one with
crop i ntensi ti es I ess than expected ( i n the
range of 65-91%, with one at 107%) A
1990 e/aluation by the World Bank of 21
i rri gati on proj ects 5- 12 years after compi e-
tion showed that irrigated area had fallen in
11 of the proj ects and that croppi ng i ntensi -
ty v\as I ov\er than at compI eti on i n 18 of the
proj ects (at 85%)."
Cropping patterns, yields,
agricultural production, and
gross value of production
C rop yi d ds and the gross val ue of produc-
tion from large irrigation damsintheWCD
Knowledge Base have often varied sigiifi-
cantly from those predicted at the outset of
the proj ects Lov\er yi el ds are often observed
for crops specified in planning documents -
which emphasise food g'ain production for
growing populations - than for the crops
actually selected byfarmers Thisoccursas
farmers respond to the market i ncentives
offered by hi ^er- value crops- either
seasonal or longer-term orchard- based crops
- and al I ocate aval I abl e resources to these
crops Thisimplies
hi ^er-than-expected
gross val ue of produc-
tion per unit of area,
with the caution that
such increases have
varied with the long-
term real price trend
of the relevant
ag'i cultural comnx)di-
ties But when chang-
es in cropping pat-
terns are combi ned wi th shortfal I s i n area
devd oped and croppi ng i ntensi ty the end-
result is often a shortfal I in agricultural
producti on from the scheme as a whol e.
G ross val ue of producti on i s hi ^er where
the shift to higher-val ue crops offststhe
shortfal I i n area or i ntensi ty targets
TheWCDCaseStudies provi de exampi es of
both underestimation and overestimation of
the quantity and val ue of agricultural
producti on . I n the case of the C ol umbi a
Basin Project, yidds have been 30-50%
hi^erthan predicted in planning reports in
1932. Partly because of a shift to higher-
val ue crops the gross monetary val ue of
actual agricultural production per unit of
area al most doubled from that antici pated at
the ti me. For exampi e, the area pi anted to
fruit and vegetables i n 1992 was 60%
compared to 20% thi rty years earl i er. Yi d ds
of fodder and cereal crops al so i ncreased
significantly due to improved varieties and
mechanisation.
Si mil arly i n the case of the A si antas dam i n
Turkey, the cropping pattern changed
dramatically from that planned - partly
retai ni ng the staple wheat crop and g^owi ng
second high-value crops such as soybean,
rather than cotton as predicted. Yidds of
wheat and cotton reached 75% of predic-
tions whilev\0termdon and nreize exceeded
The Report of the World Commission on Dams
45
Chapter 2
Box 2.1 Efficiency in tlie use of
irrigation water
Surface irrigation systems of the type
supported by large dam projects have
tended to use water inefficiently Surface
water irrigation efficiency is in the range of
25-40% in India, M exico, Pal<istan, the
Philippines and Thailand: 40-45% in
M alaysia and M orocco; and 50-60% in
Israel, ] apan and Taiwan. The Aslantas
Case Study suggests that the overall
irngation efficiency of the Aslantas project
IS 40%. These examples suggest that the
ratio of water consumed by crops to the
water delivered from the source varies
from 25-50%,
Sources: WCD Thematic Review IV,2
rngation 0 ptions. Chapter 3; WCD
Aslantas Case Study
targets by 50-100%. Overall, the gross
monetary value of agricultural production
reached 71% of that predicted. In the case
of Tarbela, yields of wheat, rice and cotton
are between 9% and 50% lower than
predicted in the feasibility report.
Lower than expected crop yields have been
caused by agronomic factors, including
cultivation practices, poor seed quality pest
attack and adverse weather conditions, and
by lack of labour or financial resources.
Physical factors such as
poor drainage, uneven or
unsuitable land, ineffi-
cient and unreliable
irrigation application,
and salinity also hinder
agricultural production
(see below). The effi-
ciency of water use
affects not only produc-
tion but also demand
and supply of irrigated
water (see Box 2.1).
A n important cause of
the difficulties in achiev-
ing targets for gross value
of production is the
decline in commodity prices. For example,
in real terms, world prices for grains in the
1990s were of the order of half those in the
1950s. A Ithough there were significant
annual variations, the average price of rice
from 1950 to 1981 was$850/ton (in 1997
prices), compared with $350/ton from 1985
to date.21 Wheat prices have shown a
similar decline, but less SB/ere($330/ton
from 1950 to 1981 in 1998 prices, compared
with $140 from 1985 to 1999)." The
observed fal I i n pri ces stems i n part from the
i ncrease i n food producti on that v\as spurred
by i rri gated agri cul ture and the G reen
Revolution, but also from production
subsidies and other incentives used by many
countri es to support ag'i cul ture. T h i s fal I in
pri ces has contri buted to I ov\e1 ng the val ue of
production achie/ed as against predictions
A general pattem of shortfall sand variability
i n ag'i cul tural producti on from i rri gati on
proj ects i n devd opi ng countri es i s al so
re/ealed by other sources I n the 1990
World BankOED study on irrigation cited
earl i er, 15 of 21 proj ects had I ov\er than
planned ag'i cul tural production at comple-
tion. Evaluations of 192 irrigation projects
approved betvreen 1961 and 1984 by the
World Bank indicated that only 67% per-
forrred sati sfectori I y agai nst thei r tar^ts' '
Financial and economic
profitability
Si nee the 1930s i n the i ndustrial countries
and from the 1970s i n de/d opi ng countri es
finandal and economic profitability have
become an i mportant, if not the domi nant,
decision criteria in water projects'* Conse-
quently approval of many large dam
proj ects was conti ngent upon esti mates of
thd r predi cted profi tabi I i ty. T he measures
typical ly u^ to assess profi tabi I ity are the
finandal internal rate of return (FIRR) and
economic internal rate of return (EIRR) as
determi ned through cost-benefit analyses
T he Fl RR td Is the project owner if the
project is profitable, while the EIRR is
i ntended to td I soci ety if the proj ect i n>
proves the overal I economi c wd fare ( or
wd I - bd ng) of the nati on . U nder- perfornv
ance rdative to targets does not necessari ly
implythat a project is unprofitable in
economi c terms as the rate of return of a
proj ect may fal I short of i ts target but sti 1 1
exceed the opportunity cost of capital to the
economy.
Typically an El RR of over 10% isjudged
acceptable i n the context of a de/d opi ng
46
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
economy." Onthisbasis> irrigation dam
projects i n the WC D Knowledge Base have
al I too often fai I ed to del i ver on prom! sed
financial and economic profitability- e/en
when defi ned narrowly i n terms of di rect
project costs and benefits
G iven the lack of eval uation studies on
I arge dams for i rri gati on purposes the W C D
compiled financial and economic perforn>
ance data from a seri es of pro] ect apprai sal ,
completion, and audit reports on large dam
projects funded by the World Bank and
ADB (see Figure 2.6)." The average El RR
at apprai sal for the 14 i rri gati on dams was
si i^tly above 15%, and at e/al uation it v\as
10.5%, a significant shortfall in economic
performance for the g'oup. W hereas 12
pro] ects had expected returns of over 12% at
appraisal , this number had fail en to five by
e/aluation. I n four ca^ the El R Rat e/al ua-
tion fel I bel ow the cut-off rate of 10%.
T he results extracted from the A DB and
World Bank reports are of course based only
on evaluation studies undertaken at comple-
tion of the i mpl ementati on phas or j ust a
few years after commi ssi oni ng. T hey i ncor-
porate the effects of cost overnjns and i n i ti al
operati ng results but are not long-term or
comprehensive in nature. They typically
only consider the di rect project costs and
benefits of the project and do not account
forthesxial and environmental impacts
associated with the dam or agricultural
production. In the case of the Columbia
Basin Project, even a cursory analysis of the
I ong-term performance data aval I abl e from
theWCD Case Study which shows that the
I arge cost overruns and lov\er-than-expected
del i very of benefi ts rai se questi ons about the
economicsof the project (see Box 2.2).
I n post-evaluation studies of irrigation and
rural devd opment pro] ects by the Worl d
Figure 2.6 Economic performance of multilateral-financed irrigation
dams
14
12
10
Economic
internal rate of
return
□ 12%+
□ <12-10%
H <10-5%
□ <5%
N
Atappraisai Atevaiuation
ote: Totai number of projects reviewed is fourteen
IH
Source: WCD Thematic Review 1 1 1.1 Economic Analysis, ChapterlO.
Box 2.2 Economic and financial performance of tlie Columbia Basin
Project
Tlie Columbia Basin Project (CBP) was never expected to cover its costs, and
was criticised by early opponents because it would not be economically
profitable. Yet the WCD Case Study reports that a $2 150/ha increase in
assessed land values has occurred for irngated land within the project area.
When applied to the 268 000 hectares under cultivation, the capitalised
increase In the value of the land would be $575 million in 1998 dollars. Even if
the full value ofthis increase was due to the CBP alone, it is clearthat it would
not come close to the real cost of the CBP of $3.6 billion, as reported in the
Case Study
A better approach to assessing the project is to compare the present value of
costs of the project with the benefits. The Case Study calculated the present
value of CBP costs at $1.47 billion at a 10% discount rate," Tw/o simple
assumptions may be used to generate a best-case estimate of benefits. First,
the full value of the average net production value of $500/ha per year as
reported by a recent study of the CBP is attributed to imigation (that is as a
return to irngated water and not other fanning or capital inputs). Second, these
benefits are considered to occurforall years since 1945 (project start-up) and to
all of the 268 000 hectares. The resulting net present value of benefits from
1945 to 2010 at 10% discount rate is $1,32 billion. Note that the assumptions
made are generous, given that actual acreage and gross value of production
increased only gradually overtime, and thus the actual magnitude of eariy
economic benefits would have been considerably less. In addition, the
opportunity cost of water diverted to the CBP of $39 million per year is left out
of the calculation.
As the benefits are less than the costs, the results suggest that the CBP did not
achieve a 10% rate of retum (when measured on an incremental basis, that Is
apart from the Grand Coulee dam (GCD)), While this simplistic analysis
providesjust an indication of possible returns from the project, it illustrates the
type of information provided by ex-post evaluation of economic profitability
Furtiher, it demonstrates the concems raised about multi-purpose projects,
where the irngation component fails a cost-benefit test. Would the United
States economy have been better off investing only in GCD - and using the
revenues from GCD to invest in other profitable opportunities in the economy -
rather than reinvesting the profits in the CBP?-'
Source: calculations based on
WCD Grand Coulee Case Study
The Report of the World Commission on Dams
47
Chapter 2
Bank and theA DB, half the projects were
judged as unprofitable in economic terms,
that is having El RRs of less than 10%. More
than three-quarters of the projects returned
less than expected at appraisal. In fact, the
average of the EIRRsfor the World Bank
irrigation projects was 17.7% at appraisal.
At completion, this dropped to 14.8%, and
at the time of impact evaluation - typically
six to eight years after completion - the
EIRRshad fallen to 9.3%. This rather strong
downward trend indicates that many irriga-
tion projects - not just large dams projects -
suffer from a tendency to overstate project
returns at the outset, also referred to as
'appraisal optimism. '^^
Cost recovery
Publ i c agenci es have not al v\ays attempted
to recover costs assxiated with public
i nf rastructure proj ects W here the servi ces
Box 2.3 Cost recovery for the Aslantas Dam
In negotiations leading up to the Aslantas dam project, the Worid Bank was
assured that arrangements would be made for recovenng O&M costs for the
dam and irngation systems, capital costs forthe dam and irngation system
(over 50 years), and on-farm development costs (over 15-20 years). An annual
recovery charge of TL 1 250 per hectare to cover the first two items was
proposed in the 1972 appraisal by the World Bank, and assurance was received
that this would be reviewed even/ five years, when the rates would be adjusted
for inflation. This comes to roughly $350 per hectare in 1998 dollars and would
have represented half of the expected farming profits per hectare as estimated
at appraisal. Even under such a repayment program, the Bank estimated that
farmers would pay back only about one-quarter of the total capital and O&M
costs.
Actual recovery of capital costs appears to have fared quite poody The capital
cost recovery charge rate was increased in 1981, 1982 and 1986. Due to rapid
local inflation and subsequent devaluation of the Turkish lira, however, the TL
7 500 charge set in 1986 came to just $0.03 per hectare in 1998. Collection
rates have been a continual problem. In 1984, the collection rates on assessed
charges for capital costs were only 63% at which time penalties were intro-
duced. M ore recently the W CD Case Study suggests that the transfer of O&M
responsibilities to the local water user association in 1995 resulted in greatly
increased recovery of annual O&M costs. Indirect cost recovery forthe sector
as a whole in the form of a withholding tax of 5% on agncultural sales was
instituted country-wide in 1981, yielding on average $93 of revenue per hectare
of agricultural holding. Still, the project has a very low rate of capital cost
recovery and has not come close to the 25% recovery agreed at appraisal.
Source: WCD Aslantas Case Study:
World Bank, 1973: Wodd Bank, 1985,
provi ded by I arge dams are val ued as con-
sumption goods or productive inputs the
absence of cost recovery by the sponsori ng
agency is often equivalent to a subsidy in
the sense that the I arge dam proj ect pro-
vi des a benefit for which no fees are paid.
Which parti ci pants i n I arge dam proj ects
recei ve these subsi di es i s exami ned further
i n C hapter 4. A I ack of cost recovery i s not
j ust a matter of subsidy Uovjejer. Provision
of free sen/i ces and subsi di sed i n puts often
leads to mi sal location of resources and
inefficient production. Further, it may lead
to perverse behavi our as peopi e di rect thei r
efforts to obtai ni ng such subsi di es ( rent-
seeking behaviour) rather than productive
activities
T he analysi s here asseses the extent to
which cost recovery isan explicit objective
i n I arge dam i rri gati on proj ects and the
extent to which it has met expectations or,
i f cost recovery was not anti ci pated, the
extent to which it has occurred in any
event. Not surprisingly recovery of capital
costs for i rri gati on has rare! y been a target
and ise/en more rarely achieved. Perfomv
ancein recovering operational and mainte-
nance(0&M) costs is typically poor,
althou^ increasing recognition of the
i mportance of recovery to performance I ed
to institutional innovations that increased
collection of O&M charges in the 199Qs
Recovery of operational and
maintenance costs
T here was mixed performance on the
recovery of 0 & M costs in the three WCD
Case Study dams that involved irrigation. In
the case of the A slantas dam, recovery of
costs was expected but only made progress
after 1995 with the adoption of a water user
association (see Box 2.3). In the Indus Basin
Irrigation System, where the Tarbela Dam
48
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
plays a pivotal role, revenues from irrigation
fees basically covered operation and mainte-
nance costs up until 1970. Subsequently,
revenues have declined, and the gap be-
tween 0 & jvj expenditure and recoveries
reached 44% by 1992 in Punjab and 30% in
Sindh. At the same time, an increasing
proportion of the revenues was being
allocated to agency costs as opposed to
maintenance activities.
A similar situation occurs in India, where
the gross receipts from irrigation charges are
considerably less than the recurrent costs of
O&M. In the 1960s receipts covered
expenditures, however, by the end of the
1980s receipts were only of the order of 10%
of expenditures.^" Annual operational
I osffis became a huge fiscal liability, vvith
annual operational lossesexceecling$l
billion by the mid-1990s T he vvater charges
col I ected represent about 2% of the i ncre-
mental benefitsof irrigation." In the
Columbia Basin Project, irrigators pay only
a very smal I porti on of the costs of pumpi ng
vvater i nto the C BP ^em and nothi ng for
thevvater itsif- vvhich has a large opportu-
nity cost i n terms of foregone hydropower
production at G rand Coulee.
The information gathered by the WCD on
O&M cost recovery is confirmed by the
literature in thisfidd. A survey done si nee
1992 of 18 i rri gati on ^ems v\orl dwi de
shov\E consi derabi e vari ati on of recovery
rates with publ ic agency ^ems i n the
range of 30-50% and some local ly managed
^ems reachi ng ful I cost recovery' ' T he
1990e/aluation by the World Bank reports
that i n 11 of 21 cases recovery rates v\ere
too lowto cover irrigation O&M costs In
M exi CO, vvater usr associ ati ons have proved
effective i n i mprovi ng cost recovery and
management."
Recovery of Capital Costs
T he tendency to poor fi nan-
cial and economic performi-
ance and the fai I ure to recover
O&M costs suggest that e/en
where i t i s an expl i ci t obj ec-
tive, recovery of capital costs
will be limited. TheAslantas
dam provi des a fai rl y stark
exampi e of the fai I ure not only to recover
these costs but als3 to stick to agieements
nBde i n this regard (see Box 2.3) . I n the
World Bank's 1990 e/aluation report on
i rri ^i on proj ects e/en the esses of 'excel I ent'
cost recovery resulted i n only partial recovery
of capital costs
I n sum theasKssrrent of I ar^ dam irrigation
scherres ra/eal s that whi I e there i s consi dera-
blevariabilityin perfbnrance, such
scherres haveal I too often fai len
short of physical targets and fai led
to recover thei r costs i n esses where
that v\as the i ntenti on i ndi cated i n
the project document. Further, in
nBny cassthe economic j ustifi ca-
tion for the approval of the proj ect
has not been borne out by actual
experi ence i n i mpl errentati on and
operation due to cost overruns and shortfal Is
in net benefi ts of aji cultural production.
Hydropower Dams
Large hydropower dams in the W C D
Knowledge Base can be divided into three
groups. T he first two groups represent the
extremes: a number of projects that have
greatly exceeded their targets and a few
notable under-performers. The bulk of
projects have delivered power within a close
range of pre-project targets but with an
overall tendency to fall short of targets.
Hydropower projects - as with other large
dams - have incurred cost overruns and
The bulk of projects have
delivered power within a
close range of pre-
project targets but with
an overall tendency to
fall short of targets.
The Report of the World Commission on Dams
49
Chapter 2
schedule delays. Limited available evidence
suggests that hydropower projects often
diverge substantially from their economic
targets, in either a positive or negative
direction. Financial performance is more
consistent and with less downside variability
Finally a number of older projects continue
generating benefits even after a half-century
or more of operation.
Delivery of services and
benefits
Large dams in the WCD Knowledge Base
that were designed to deliver electric power
have on average met expectations for the
delivery of power but with considerable
variability much of it on the downside. A
number of projects have far exceeded their
technical, financial and economic targets,
whereas others have fallen well short.
Delivery of services and benefits are exam-
ined by assessing performance to targets for
installed capacity and delivery of power.
H ydropower also offers ancillary services to
the power grid.
Figure 2.7 Project averages for actual versus planned hydropower
generation
Hydropower sub-sample: 63 dams
20
18
16
14
12
10
8
6
4
2
0
30%
25%
20%
15%
10%
5%
0%
o
below target
above target
0 ^'i'
Averages of actual to planned percentages per project
Source: WCD C ross-C heck Survey.
In contrast to irrigation, the hydropower
performance of 63 large dams in the W C D
C ross-C heck Survey was on average closer
to target (see Figure 2.7). But as with
irrigation dams, the variance in performance
across the projects was extremely large (see
Figure 2.8). On average, almost half of the
sample exceeded the set targets for power
generation - with about 15% exceeding
targets by a significant amount. It also shows
that around one- fifth of the projects in the
sampleachieve less than 75% of the planned
power targets. A side from these marked
extremes. Figure 2.7 shows that over half of
the projects in the sample fall short of their
power production targets. Thus average
performance in the sample is sustained by a
few over-performers and should not mask
the variance in performance that is weight-
ed towards shortfalls in power delivery
The high er-than-expected output in hydro-
power generation from almost half of the
large dam projects in the C ross-C heck
Survey is due only in small part to the
addition of extra installed capacity prior to
commissioning, but more especially since
commissioning. 0 ne-quarter of the large
dams with higher-than-expected output had
installed more than 100% of the capacity
planned in the feasibility study
TheTucurui dam diverged from feasibility
design when initial installed capacity was
raised from 2 700 to 4 000 M W before
commissioning. Tarbela, G rand C oulee, and
the G lomma and Laagen dams have all seen
subsequent installation of significant
amounts of additional capacity that were
not foreseen at feasibility Furthermore, both
Kariba and Tucurui are multi-stage projects
that involve doubling of capacity The
profiles of hydropower performance of the
C ase Study dams in Figure 2.9 illustrate how
installation of more than initially expected
50
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
capacity leads to higher-than-expected
power output (G rand C oulee and Tarbela) .
H owever, energy output is often also lower
than initially estimated. The Victoria dam
in Sri Lanka had a predicted energy genera-
tion of 970 G W h/annum, but in reality only
produces an average of 670 G W h, a shortfall
of over 30%.^'' Higher-than-expected
upstream i rri gati on abstracti ons and I ov\er-
than- predicted natural stream flovvsv\ere
the causs i n th i s case. C ase Study resul ts
from Pak M un, which isa run-of-river
project with peaking capacity, shov\ed that
i n the f i rst four years of operati on after 1994
the i nstal led capacity and total annual
energy generation were as expected. Howb/-
er, the abi I i ty of the proj ect to del i ver
energy for i ts pri mary purpos of a pi an ned
four- hour peak period was considerably less
than expected i n the dry season, leadi ng to
questi ons regardi ng i ts economi c vi abi I i ty
(as discussed below).
Further analysis of the C ross-C heck data
re/eal s that the average generati on i n the
fi rst year of commerci al operati on i s 80% of
the targeted val ue for I arge hydrod ectri c
dams (see Figure 2.8) . I n years two to five,
the average percentage real i sati on of targets
rose to near 100%, howB/er this i mprove-
ment i n the average for any ti me peri od
masks considerable variation in the sub-
sample with half or more of projects still
fal I i ng short of predi cted power generati on .
Del ays i n the constructi on phase of proj ects
(as documented earl i er) , i n reservoi r fi 1 1 i ng
(if low rainfall pre/ails), and in installing
and bri ng ng turbi nes on- 1 i ne expl ai n
shortfal Is i n performance i n the early years
Figure 2.8 Actual versus planned hydropower generation over time
300 r-
275 -
250 -
225 -
200 -
175 -
150 -
125 -
100
75 -
50 -
25 -
i !
! f
t
t •
i
1
(n=no. of dams)
Hydropower sub-sample
100% Target
/ t
5
(n=55)
10
(n=51)
I
t
..4..
Fit line
15
(n^l)
20
(n=33)
Years from start of commercial operation
1 case
•
•
2 cases
•
3 cases
•
4 cases
•
5 cases
t
i
25
(n=24)
30
(n=16)
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
51
Chapter 2
of commercial operation. Delays in install-
ing capacity and subsequent delays in
meeting power targets are noted in two case
studies (Tarbela and Kariba). Tarbela met
and exceeded predicted levels in 1992,
which coincided with the commissioning of
the full complement of planned capacity
(see Figure 2.9).
Figure 2.9 WCD case study hydropower performance: capacity and power generation
Grand Coulee
Predicted versus actual installed capacity
GW
Actual ^
Predicted
1940 1960 1980 2000
Kariba
Predicted versus actual installed capacity
M W
1960 1970 1980 1990 2000
Tarbela
Predicted versus actual installed capacity
GW
Predicted
Actual
1975 1980 1985 1990 1995 2000
Grand Coulee
Predicted versus actual generation
TWh
25
20
15
10
5
0
1940 1960 1980 2000
Kariba
Predicted versus actual generation
TWh
Predicted
Actual
1960 1970 1980 1990 2000
Tarbela
Predicted versus actual generation
TWh
15
10
5
■Predicted
Actual
1975 1980 1985 1990 1995 2000
Source: 1/1/ CD Grand Coulee, Kariba and Tarbela C ase Studies.
52
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
T he W C D C ase Studies show that unex-
pected events and design changes during the
project development stage may lead to
delays in achieving power generation
targets. For example, Tarbela experienced
major structural damage in commissioning
trials that led to a two-year loss of power
generation, and in South Africa the deci-
sion to increase power generation by in-
creasing the height of the Van der Kloof
dam delayed its commissioning. W here
delay is not the result of slower than expect-
ed growth in demand for power, such delays
in reaching targets may have important
consequences for providing power to con-
sumers and securing early economic benefits
from a project.
A further observation on timing of power
delivery from the C ross-C heck Survey is the
consistency in the distribution of the sample
over the period surveyed (see Figure 2.8).
TheWCD Case Studies provide a series of
examples (G rand C oulee, Tarbela, and
Tucurui) in which power output from very
large dams increases over long periods (in
absolute terms and relative to predictions).
Power production at G rand Coulee, for
example, has trended upward for the last 60
years - though marked by significant inter-
annual variability (see Figure 2.9).
This variation in power production over
time within a single project is noted in the
W C D C ross-C heck Survey and additional
C ase Studies. N ormal variations in weather
and river flows dictate that virtually all
hydroelectric projects will have year-to-year
fluctuations in output. T he effect of drought
years can be easily seen in the large swings
in annual power generation from G rand
Coulee and Kariba, particularly over the last
two decades. W hether changes in regional
and global climate are exacerbating normal
weather- related interannual variation remains
to be seen. Such variation may
also reflect changes in other
demand and supply factors.
Technical efficiency
and ancillary services
T he G lomma and Laagen and
Grand Coulee Case Studies
illustrate how unplanned
improvements in generation were achieved
by a combination of factors such as adding
new powerhouses to the same reservoir,
adding additional turbines, upgrading
existing turbine and generation equipment,
or optimising reservoir operations to im-
prove performance.
These experiences of improving the per-
formance of hydropower generation over a
project's life are not confined to industrial
countries. In Nepal, modifications to the
intake, provision of an extra desanden
dredging the forebay and refurbishing the
generators/turbines and power house control
systems at theTrushuli-Devighat hydropow-
er station in 1995 improved average annual
power generation by 46% - from 194 to 284
GWhayear^^ In othercasstheoptimisd
operation of rean/oi rs has led to i ncreased
generati on duri ng a proj ect's I i fe." The
trend in the industry in
Europe and N orth A meri-
ca is to optimise reservoir
operations and pov\er
dispatch schedules to
i mprove performance by
usi ng more sophi sti cated
'decision-support' systems
(see Box 2.4) .
Delays in reaching
targets may have
important consequences
for providing power to
consumers and securing
eariy economic benefits
from a project.
Box 2.4 Optimising operations witli
tlie aid of a computerised decision-
support system
T he and 1 1 ary sen/i ces
associated with hydropow-
er generation - for exan>
pl e, reacti ve power genera-
ti on and fast starting
Since 1987, two hydroelectric plants m the
coastal mountains of British Columbia have
used a computerised decision support
system (DSS) to guide weekly reservoir
release decisions. Studies of 1970-74
operations (before the support: system
became operational) showed that the rule-
curve-based operation had produced 83%
of the maximum attainable energy. With
the DSS, the actual energy produced each
year between 1989 and 1993 rose to 100,
93, 98, 94, and 96% respectively of the
maximum possible.
Source: WCD Thematic Review
IV,5 Operations
The Report of the World Commission on Dams
53
Chapter 2
reserve generation - reduce or even defer
other investments in tlie electrical system.
Financial and economic
profitability
Schedule delays, cost overruns and variabili-
ty in delivery of power suggest a broad
variation in economic performance for
hydropower projects. Further, evidence from
N orth A merica suggests that the 0 & M
costs of hydropower rise over time."
Large hydropov\er dams i n the WC D
K nowl edge Base conf i rm that there i s
consi derabi e vari abi I i ty i n meeti ng econom-
i c targets and ach i e/i ng economi c profi ta-
bi I ity (when defi ned narrowly i n terms of
proj ect costs and di rect benef i ts) . U n I i ke
I arge dam i rri gati on proj ects the vari abi I i ty
isnotonlyto the down-side, with SDme
projects perform! ng better than expected.
Much less variation isobserved in financial
performance relative to targets^ although
Figure 2.10 M ultilateral bank evaluation results on the economic
performance for hydropower dams
16
14
12
10
8
6
4
2
0
Economic
nternal rate of
return
□ 12%+
□ <12-10%
□ <5%
At appraisal At evaluation
N ote: Total number of projects reviewed is twenty
Source: WCD Thematic Review 1 1 1.1 Economic A nalyas, Chapter 10.
there is a wide spread i n terms of actual
financial rates of return.
Evidence compiled by WCD from nxiiti lat-
eral bank appraisal sand evaluation studies
shows that althou^ a number of hydropow-
er proj ects fal I short of thei r fi nanci al and
economi c targets and can be consi dered
economi cal I y un profi tabi e, others meet thei r
targets or e/en exceed expected profi tabi I ity
(see Figure 2.10). Of 20 World Bank, A fDB,
andADB proj ects re/iewed, 11 fell below
initial targets and seven rose above these
targets; overall, nine projects had returns
below 10% but only six of the projects
actually fell to this level (the other three
al ready had low rates of return at apprais-
al). These evaluation studies do not
reflect long-term performance data, but
rather the effect of cost overruns and
initial lags in performance.
The nine evaluation studies that included
data on fi nanci al performance (al I from the
World Bank and ADB) shov\ed nxich les
downward variability with onlyone project
fal I i ng short of target by a si giifi cant
amount ( namely from 11% down to 6%) .
T hree projects i mproved thei r performance
by 5% over expected returns The results
may refl ect the admi n i strati ve nature of
tariff setting, which enables tariffs to be
adj usted to sui t the fi nanci al requi rements
of a project.
Long-term data gathered by the C ommi s-
si on through the C dse Studi es i 1 1 ustrates the
range of profi tabi I ity actual I y achieved by
hydropower projects I ndeed, three of the
C dse Studi es provi de a succi net i 1 1 ustrati on
of proj ects that are superl ati ve, respectabi e,
or borderl i ne i n terms of pnofi tabi I i ty A
fourth demonstrates how a project may be
approved, but i n the end fal I short i n terms
of profitability.
54
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
T he financial and economic performance of
G rand C oulee as a stand-alone hydropower
project can only be described as superlative
(see Box 2.5). Further, after 60 years of
operation it shows no sign of slowing down.
I n the case of the Kariba dam, the C ase
Study reports on a cost-benefit calculation
that took the original economic assumptions
and developed both predicted and actual
EIRRs. Based on 40 years of operating data,
and including the cost overruns under the
second stage of the project, the actual EIRR
is a respectable 14.5%, down from the
16.5% calculated for the project as planned.
I n the case of Tucurui dam, the project was
planned under a military dictatorship and
there was little concern during planning for
economic profitability or cost recovery. The
W C D C ase Study suggests that the project
is marginally profitable relative to the
consumer price of electricity but this omits
the costs of transmission and distribution
(see Box 2.6). Perhaps the simplest observa-
tion is that had the project met its original
cost target it would have produced, in
financial terms, low-cost power. H owever,
the large cost overrun - $3.3 billion more
than expected - effectively erased the
competitive advantage that the site may
have had. Further, the relatively high unit
cost of electricity from the facility and the
subsidies to industry established at commis-
sioning imply a failure to recover costs
directly as the operating utility continues to
require state subsidies.
In the case of Pak M un, installed hydropow-
er capacity and generation have met actual
targets for the few years of operations to this
poi nt. H owever, the W C D C ase Study
suggests that the failure to produce a firm
supply of peaking power during low flow
months implies that the alternative thermal
Few formal and
comprehensive post-
evaluations of the
financial and economic
profitability of large
hydropower dams exist
for comparison with the
WCD analysis.
power plant capacity used in
the appraisal of the project was
too generous. T he C ase Study
goes on to value the benefits of
Pak M un based on the avoided
costs of the alternative. T he
large reduction in the alterna-
tive power plant from 150 M W
gas turbine to a 21M W gas
turbine when combined with
the 68% cost overrun reduces the EIRR
from 12.1% to 7.9%, which is below the
opportunity cost of capital in Thailand. It is
worth notingthat thiscalculation simply
demonstrates that the energy supplied by
Pak M un could have been supplied in a
more inexpensive fashion, for example by
using the 21 M W gas turbine and secondary
power from other plants.
Few formal and comprehensive post-evalua-
tions of the financial and economic profita-
bility of large hydropower dams exist for
comparison with the WCD analysis. Despite
Box 2.5 Financial and economic performance of liydropower at
Grand Coulee dam
Financial profitability. Profitability of the Grand Coulee dam (G CD) was not an
explicit objective. Still, even at a real tariff of $0.02/ l<Wh the G CD will have
generated real revenues of around $15 billion over the last 50 years. These can
be compared with real project costs of $5,7 billion. While the inclusion of
operating costs and discounting would reduce this gap, it seems that GCD is
quite profitable in financial terms.
Economic profitability. N o cost-benefit analysis was undertaken in the 1932
Butler Report. Prior to installation of the third power plant, an analysis by the US
Bureau of Reclamation, yielded a benefit-cost ratio of over 3:1, When the cost
overruns on the third plant are accounted for in the calculation, the benefit-cost
ratio drops - but at 2:1 it still indicates that the plant would remain a very
profitable undertaking.
Economic efficiency The current operating costs of GCD compare favourably
(more than 17 times less expensive) with next best current alternatives. This is
best stated in terms of today's decision to continue producing power from GCD
Compared with natural gas at $25 M Wh, current production levels of 20 000-
25 000 GWhs are responsible for saving $475-600 million a year in real costs to
the economy
Of course, these figures reflect only the effects of direct project costs and
benefits, not the external social and environmental impacts of the project.
Source: WCD Grand Coulee Case Study
The Report of the World Commission on Dams
55
Box 2.6 Economic performance and cost recovery of hydropower at
Tucurui dam
The Tucurui dam is a single-purpose hydropower facility developed and
operated by Eletronorte, the public utility for electricity in the north of Brazil
The WCD Case Study calculates generating costs at $40-58/MWh (for 8% and
12% discount rates). Of the total powerproduced in 1998 by Tucurui dam, about
half (12 000 GWh)wentto industry at a pnce of $24/M Wh - from $16 to $34/
M Wh below cost. Using these below-cost sales figures as an indication of the
subsidy provided to industry yields a range from $190 million per year (for the
cost at 8%) to over $400 million (at 12%). Eletronorte calculates its annual subsidy
from the public purse in 1998 at $194 million, and Tucurui is the largest of
Eletronorte's projects. Failing more precise data it appears that Tucurui could
recover its costs but that to date it may not have achieved this, in part due to
continued subsidies to industrial producers. Indirect cost recovery through
taxation of these industnes was not documented in the study
Source: WCD Tucurui Case Study
being probably the single largest financier of
dam projects in the post-war period, the
World Bank did not undertake a dam-
specific review of its portfolio until the mid-
1990s. Even then its 1996 0 ED study did
not draw on actual performance of the dams
in its sample and provides little evidence on
economic performance.^^ TheAfrican
De/dopment Bank recently re/iev\ecl its
experience with six hydroelectric dams and
found that only four passed the economi c
vi abi I i ty test usi ng a 10% di scount rate.^ '
Thus the WCD Knowledge Base shovvs that
a considerable number of hydropov\er
proj ects fal I short of thei r i n i ti al economi c
targets al though on I y a smal I er n umber can
be classified as economically unprofitable
(fal I i ng short of the rate of return target for
the economy as a whole). Meanwhile there
are al most as many proj ects i n the K nowl -
edge Base that actual I y outperform thei r
economic targets Finally it is worth empha-
sising that cost recovery has not been a
substantial problemforhydropov\er project?
i ndeed, the focus is more on profitabi I ity i n
the current context of trends towards
private-ffictor participation in electric pov\er
production."
Water Supply Dams
Water supply dams i n the WC D Knowledge
Base have general I y fal I en short of i ntended
ti mi ng and targets for bul k v\ater del i very
and have exhibited poor financial cost
recovery and economic performance. These
resul ts refl ect the I onger devd opment
horizDn of such dams as well asover-
esti mates of demand, and are si mi I ar to the
general di recti on of results i n the v\0ter
supply and sanitation sector.
Delivery of bulk water supply
T he C ross-C heck Survey found that one-
quarter of the 29 dams with a water supply
function have delivered less than 50% of
target. Furthermore, on average 70% of the
sample did not reach their targets over time
for the delivery of bulk water supply (see
Figures 2.11 and 2.12) . M uch of the overall
sample variability is due to the multi-
purpose, single-purpose distinction in
conjunction with reservoir size. The data
suggests that all delivery of bulk water in
excess of planned targets can be ascribed to
multi-purpose dams. T his is contrary to
performance trends for other purposes where
single purpose dams generally come out
better Regarding reservoir size, it is clear
from the survey that the smaller the reser-
voir area, the closer to target results have
been - with the exception of the 11 reser-
voirs larger than 100 square kilometres.
T hese very large reservoirs exhibit extreme
variability, ranging from under- performance
to considerable over-performance and
delivering maximum achieved bulk water
supplies up to 2.5 times planned targets.
T he principal message with regard to water
supply emerging from the C ase Studies is
that even when it is not planned, demand
for water supply from dams built for other
purposes emerges over time. I n the case of
56
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
O
Tarbela, water from the river system down-
stream of the dam is diverted through irriga-
tion canalsto Karachi to supplement other
sources of municipal water supply. In the case
oftheAslantas, the growth of local districts
has prompted an application to the authorities
forthesupply of over400 million litres per day
from the reservoir.
T he C ross-C heck sample showed a tenden-
cy towards under utilisation of capacity that
is reflected more generally in a 1994 post
evaluation synthesis study of 31 water supply
and sanitation projects by A DB. The
utilisation of capacity varied from 33-80%.
A part from the fact that evaluations were
carried out at early stages in the life of the
projects, a number of causes were suggested
for low rates of utilisation, including lower
Source; 1/1/ CD C ross-C heck Survey.
Figure 2.12 Actual versus planned bulk water supply delivery over time
Figure 2.11 Project averages for actual versus planned bulk water
supply delivery
^ater supply sub-sample: 29 dams
— below target — \ — above target -
C.^ C^^'^ J" J" ^ 4" ^
^ <S' ^ qO-^ ^O-^ rp^
^ % ^
Averages of actual to planned percentages per project
25%
20% ^
u
15% °
10% S
ij
OJ
Q_
5%
0%
Water supply sub-sample: 29 dams
160
140
120 -
100
fo 60
20
1 case
•
2 cases
•
3 cases
•
4 cases
•
5 cases
•
6 cases
# 7 cases
100% Target
Fit line
1 5
(n=no. of dams) (n=21)
10
(n=20)
15
(n=16)
20
(n=16)
25
(n=12)
30
(n=8
Years from start of oommeroiai operation
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
57
Chapter 2
A t current rates, water
fees are rarely sufficient
to recover both capitai
and recurrent costs for
water suppiy systems in
many deveioping
countries.
than expected growth in both
population and in per capita
consumption.''^
Financial and
economic profitability
Growing concern over the
cost and effectiveness of
large dams and related
structural measures as
long-term responses to
floods has led to support
for integrated flood
management as opposed
to flood control.
Si e- purpose water suppi y
damsin tlieWCD Knowledge
Base had poor performance i n fi nancial and
economic terms. Exami nation of appraisal
and eval uati on fi gures for four Worl d Ban k
and A DB water supply dams show that three
of them dropped from El RRs above 10% to
v\ell bdowthat. Asa whole, the El RRsof
the g'oup fell by over 6%.
Poor financial and economic performance
for large dams rou^ly approxi mates that for
the sctor as a whol e. A sector ^thesi s of
post-e/al uati on fi ndi ngs from 20 A D B water
supply and sanitation projects found that 18
projects had actual FI RRsthat failed to
meet projected FI RRs and 17 of these were
bd ow 10%.' ' T hese types of sectoral results
are confi rmed by other sources A si mi I ar
World Bank analysis found that almost all of
129 water supply and sev\erage pro] ects
re/iewed had El RRs below 10%."
At current rates vvater fees are rarely
sufficient to recover both
capital and recurrent costs for
water suppI y ^ems i n many
devd opi ng countri es. Average
tariffs i n an A DB survey ranged
from very low i n Calcutta
($0.01 per cubic metre) to
$0.66 per cubic metre in Cebu,
Philippines Thirty five of the
50 uti I ities i n the survey cov-
ered O&M costs through their
tari ff col I ecti ons T he rati o of
billingstoO&M costsfor 37 utilities
i ncreased from 1.03 to 1. 12 duri ng 1991 to
1995, i ndi cati ng an i ncrease i n f i nanci al
vi abi I i ty for recurrent costs' *
Still, a number of studies by the World Bank
have demonstrated that people, e/en those
who are I ess v\el I off i n de/d opi ng coun-
tri es are often wi 1 1 i ng to pay for i mproved
water supply sen/ices" For example, a study
i n N igeria demonstrated that on an annual
basi s househol ds pay water vendors over
twi ce the 0 & M costs of a pi ped di stri buti on
^em."
Flood Control Dams
For centuri es soci eti es have bui 1 1 1 e/ees and
embankments along riverbanksto contain
and control the effects of fl oods T he
purpose has been to occupy f I oodpl ai ns for
agricultural, urban, and industrial uses and
to reduce any resuiti ng threat to I Ives and
property. TheWCD Knowledge Base
highli^tstwo very different perspectives on
the past performance of dams i n this regard.
T he fi rst i s a narrow focus on the rol e of
dams i n fl ood control and the second i s a
broader, more i nteg^ated approach to flood
management as an obj ecti ve. Evi dence i n
the K nowl edge Base confi rms that wh i I e
dams have provided important flood control
benefits some dams have i ncreased the
vul nerabi I i ty of ri veri ne commun i ti es to
floods G rowi ng concern over the cost and
effecti veness of I arge dams and rd ated
structural measures as I ong-term responses
to floods has led to support for i ntegrated
flood management as opposed to flood
control .
Flood control benefits
Large dams are used to control floods by
storing all or a portion of the flood waters in
the reservoir and then releasing the water
slowly overtime. Typically the principal use
58
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
of such dams is to store a portion of the
flood in order to delay or manage when the
peak occurs. This minimises the chance of
coincident peaks from floods in different
tributaries arriving at the same time in the
main-stem of the river, reducing the proba-
bility of breaching dykes and overwhelming
other flood defences. The main performance
parameter in assessing flood control benefits
is therefore the extent of reduction of the
flood peak. Indicatorsof the benefits derived
from flood control include reductions in the
area flooded and prevention of any conse-
quent loss of life, social disruption, health
impacts and property and economic losses.
The A swan High dam is an example of a
dam that stores the flood. It can store 1.5
times the average annual flow of the N lie
R iver and has provided a high degree of
protection to the lower N lie simply by
retaining the whole flood. At the same
time the beneficial aspects of natural
flooding - for example restoring the
fertility of the floodplain - have been lost,
a point returned to below and again in
Chapters."^
Four of the W C D C ase Studi es provi de
other addi ti onal exampi es of fl ood control ,
althou^ none of these dams vvere bui It
pri marl I y for th i s purpose. The Tarbd a dam
regulates about 16% of the annual flow of
the I ndus River. Analysis in the Case Study
suggests that the earl y season f I ood peak i n
the I ndus vvas reduced by 20%, howB/er
there v\as I ittle reduction i n the downstream
flow duri ng the late season flood e/ent of
1992. Similarly the reservoirs in the G I om-
nia and Laagen basi ns i n N orway regulate
about 16% oftheflowinthatbasin, where
20% mitigation in the peak flood le/d has
also been achie/ed. A major flood e/ent in
the G lomrre and Laagen basi n i n 1995
prompted a Royal Commission of enquiry
Extensive studies undertaken
at that ti me confi rmed the
operation of the resen/oi rs
reduced the fl ood peak by 2
meters I eadi ng to a correspond-
ing reduction in flood errergen-
cy rel ief and compensation
payrrents requi red by the state
For G rand C oul ee fl ood control was not an
i nitial obj ecti ve and the i nabi I ity of the dam
to control the damagi ng 1948 fl ood I ed to
the constnxtion of more reservoi rs i n
Canada to store snowmelt. A Ithou^ a
precise breakdown of the individual contri-
bution of the G rand Coulee is hard to isDiate
becaus a whol e cascade of dams contri bute to
flood control in the Columbia basin, estioBtes
i ndi cate its contri buti on way be i n the order
of $20 mi 1 1 ion a year.
Other exampi es i n the Knowl edge Base
provi de si mi I ar i ndi cati ons of the perforn>
ance of dams i n reduci ng peak f I ood I e/d s
For example, during the monsDon period in
1995, the N am N gum River experienced a
50-year flood three times in the same
season. The reservoir absorbed the first two
but v\as then ful I . W hen the thi rd fl ood
occurred the spi 1 1 way gates were opened and
Box 2.7 Flood protection in J apan
J apan is one of the top five dam-building countnes in tlie world, and flood
control is the major purpose for many dams in ] apan. An estimated 50% of
J apan's population lives in flood-prone areas, and floods have affected 80% of
municipalities in the last 10 years. The Chikugo River in the Kyushu District in
southern J apan has a mam river channel of 143 km and a catchment area of
2 860 km'. A flood in 1953 caused dyke breach in many places, causing great
damage in the area (147 people dead, approximately 74 000 houses flooded,
and one-fifth of the catchment inundated) Matsubara and Shimouke Dams
were subsequently built for flood control and power generation. The dams have
pert'ormed well; for example, during a flood in 1982 the Matsubara dam reduced
the peak river discharge 64% from a high of 2 900 to 1 040 m-s.
Source: Berga, 2000, Contnbuting paper to
Thematic IV4 Flood Management Options;
Takeuchi and Harada, 1999: p4.
Large dams in j apan have
dramatically reduced the
sudden arrival offloads in
populated areas where the
rivers are exceptionally
steep and short, and
susceptible to flash floods.
The Report of the World Commission on Dams
59
Chapter 2
The India Case Study
shows the potential
conflict between
keeping space in the
reservoir for flood
control and storing as
much water as possible
for hydropower and
irrigation.
for public
necessary.
the water level rose above the
full supply level. Due to the
retention effect of the reservoir
the peak of the third flood was
reduced by 20%.'*^ Large dams
i n J apan have dramatical ly
reduced the sudden arrival of
f I oods i n popul ated areas where
the rivers are excepti onal ly
steep and short, and suscepti ble
to flash floods (see Box 2.8) .
Del ay i n f I oodi ng provi des ti me
vvamingand e/acuation where
Limitations of flood control
operations
There are also clearly problems that emerge
from the operation of large dams for flood
control. Some dams have increased the
vulnerability of riverine communities to
floods. For example:
■ W hile rare, dam breaks have and do
occur and usually during exceptional
storms; when they do, communities
downstream are subject to extreme floods
amplified by the dam break.
■ Significant downstream damage to
communities has resulted where reser-
voirs have not been operated properly in
times of emergency or rapidly developing
situations or when floodgates have
mechanical failures at critical times.
Often communities have adapted to the
level of protection normally provided
and the contingency plans - or their
implementation - have been inadequate.
There have also been cases where peaking
operation of hydropower stations has caused
an unexpected surge of water in the river;
lives have been lost when measures to warn
populations downstream have not been
effective or heeded. Local flooding can be
caused in a similar fashion when gates are
opened to release water at peak rainfall
periods. 0 ne such serious incident was
reported in N igeria where a delay in warning
inhabitants led to a flood that overran approx-
imately 200 communities, submerging 1 500
houses and killing over 1 000 people."
As shown intheWCD Knowledge Base,
flood management may only be needed a
few days or v\^l<s i n any parti cul ar year T hus
large dams usd for flood control virtually
alv\a^ have another function, such aspov\a'
generati on or i rri gati on . T he I ndi a C as Study
portrays the potential for confl let between
flood control objectives for operation of the
resen/oi r (where storage space i n the reser-
voi r is requi red) and hydropower and
irrigation (whereit is desirable to store as
much water as possi bl e) . A ccordi ng to the
C dse Study most of the compi ai nts about
dams aggravati ng fl oods downstream stem
from this situation. The Case Study goes on
to document the lack of co-ordi nation or
real -ti me i nformati on exchange between the
upstream Tenu^at reservoi r and the opera-
tion agencies of the downstream Damodar
Valley Corporation, which put the down-
stream river reach and reservoirs at risk.
A nother aspect isthatwithcli mate vari a-
tionSi the frequency duration and intensity
of storm e/ents that I ead to fl oods appear to
be changi ng. I f so, there is a risk that a
changi ng cl i mate wi 1 1 modi fy the hydrol ogi -
cal basis on which many flood control dams
were desi gned. T hi s rai ses concerns about
the physi cal adequacy of many dams to
perform thei r fl ood management f uncti ons,
as well as the adequacy of spill ways to
handlehi^erflood volumeslikdy in a
changed cl i mate. U nited States dams are
bei ng re/iewed for thei r flood design and i n
some cases the spi 1 1 way capaci ty i s bei ng
increaffid." Thetechnical literatureon
60
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
dams is also increasingly focusing on the
role of dams in flood management, looking
at both the safety considerations and the
means to improve the flood performance.^^
From flood control to
integrated flood management
T he Knowl edge Base i dentifi es a series of
concerns over the effectiveness of dams and
rd ated structural measures as an el ement i n
a broader flood management strategy
i ncl udi ng the real i sati on :
■ that dams have encouraged settlement in
areas that are still subject to floods that
exceed the maximum design flood;
■ that the costs of ensuring complete
protection against all floods are excep-
tionally high;
■ that the effectiveness of structural
measures are reduced over time due to
the accumulation of sediment in river
beds and reservoirs; and
■ that floods have many beneficial uses in
different river basins and that the
elimination or reduction of natural
flooding has led to the loss of important
downstream ecosystem functions, as well
as loss of livelihood for flood-dependent
communities (see next two chapters on
environmental and social performance of
large dams).
T hese concerns indicate the difficulty of
fully controlling floods and of managing the
relationship between floods and people.
This underpins the shift to an emphasis on
integrated flood management - that is the
need to set objectives in terms of predicting,
managing and responding to floods - rather
than simply in terms of flood control.
Large dams with a flood control component
may provide an increased feeling of security
leading to settlement of flood-
prone areas. W hen the excep-
tional flood finally arrives, there
are more people and higher-
value property at risk than there
otherwise would have been.
Damages may therefore be larger
than if floods had continued to
be normal events within the
range of regular experience and
awareness.
I n the N am N gum case referred to earlier,
the dam was blamed for a major inundation
of downstream agricultural areas despite its
alleviation of two earlier peaks and reduc-
tion of the third peak. Since the reservoir
had not spilled for many years people had
developed a false sense of security and drains
were not maintained. In the end the flood-
waters only dispersed slowly and standing
crops did not survive. A nother example
comes from Poland where the 1997 floods
covered an area only half as large as that in
1934 yet three times as many buildings were
Box 2.8 From flood control to flood management in the United
States
Between 1950 and 1985, the United States Federal government spent $38 billion
on flood control, mostly on structural responses such as large dams. Yet average
annual flood damage, adjusted for inflation, continued to increase - more than
doubling. Average flood damage in the United States, adjusted for inflation,
was as follows:
1903-33
$1,7 b
llion
1934-63
$2,8 b
llion
1954-93
$4,6 b
llion
1994-97
$5,1 b
llion
The United States Army Corps of Engineers points out that its dams and 8 500
miles of levees have saved $387 billion in damages since 1928, but it has no
figures for damages in areas where the Corps' projects encouraged develop-
ment that was later inundated. After the 1993 M ississippi flood, congressional
testimony pointed to dams and levees as exacerbating the problem. Subse-
quently the Corps has called for more consideration of non-structural flood
management methods, including restoration of wetlands and riparian habitat,
imits on development in floodplains, and farm policy that discourages
conversion of wetlands to cropland. Likewise, communities from Rapid City,
South Dakota, to Valmeyer, Illinois, to St. Charies, M issouri, to Napa, California,
have opted to pursue non-structural approaches to alleviate recurnng floods.
Source: Schildgen, 1999
The Report of the World Commission on Dams
61
Chapter 2
flooded, 38 times as many bridges and 134
times more l<ilometres of road."
Tlie higli cost of flood control and flood
damage in the Uni ted StateSi asv\ell as the
emerging shift from a reliance on flood
control to an approach based on flood
management is descri bed i n Box 2.8. I n
many countri es rd i ance on structural
measureSi i ncl udi ng dykes, leads to a need to
conti n ual I y i nvest i n addi ti onal measures as
sedimentation decreases their effectiveness
over ti me. For centuries dykes i n Vietnam
have been progressively increased in height
as the river bed gadual ly rissdueto accunxi-
latingsdiments deposited by floods" The
samesituation pre/ails in China, whereafter
centuri es of rai si ng dykes thehei^tofthe
dykes at places on the YangtE River isover 16
metres above the fl oodpl ai n
Multi-Purpose Dams
M any I arge dams f ul fi I a n umber of purposes
with a single facility Multi-purpose projects
intheWCD Knowledge Base display many
of the same performance shortfal I s experi -
Box 2.9 Cost recovery in a multi-purpose sclieme: Grand Coulee and
the Columbia Basin Project
In the case of the Grand Coulee dam and the accompanying Columbia Basin
Project, the intention was for hydropower revenue to subsidise irngation capital
costs. The Bonneville Power Administration (BPA), which is responsible for CCD,
is charged with paying the United States Treasury for the costs associated with
hydropower development (the dam and three powerhouses) plus the share of
allocated irrigation costs not paid by irngators. These amounts are calculated in
nominal dollars but include Interest. As of 1998, the total capital costs for CCD
and C BP came to $1,93 billion. Of this, the BPA has already repaid the
hydropower costs of $1,1 billion.
The share of the remaining costs allocated to irngation is $674 million. The last
portion is for non-reimbursable capital costs such as flood control, as covered
directly by the United States Treasury. Of the irrigation share, BPA is responsible
for 87% ($585 million) and the irrigators are to cover the remaining 13% ($89
million). As of 1998, irrigators had paid in $51 million (in dollars uncorrected for
inflation), BPA is scheduled to make payments on its share of the irrigation costs
during 2009-45, As hydropower revenues from the sale of CCD power come
close to $500 million, it is clear that the project could easily cover costs under
such terms.
Source: WCD Grand Coulee Case Study
enced by si ngle- purpose projects and, i n a
number of cass achie/ed I ess relative to
tan^ thanthdrsin^e- purpos counterparts
T he WC D C ross-C heck Survey shows that
nxilti-purpos dams have had a hi^ degree
of variability in achie/ing physical targets
across most benefit streams As indicated
earl i er, si n^ e- purpose pro] ects i n the C ross-
C heck sub-sample tend to cl uster closer to
planned targets for project schedule, hydro-
power, and water supply performance than
nxilti-purposdams Theexceptionsv\ere
irrigation pro] ects which showed little
difference between si ngle and multi-purpos
pro] ects i n vari abi I i ty of performance.
T he C ross-C heck Survey also suggests that
nxilti-purpos projects have hi^er cost
overruns and higher vari abi I ity i n these
overruns than si ngle- purpose projects A
small sample of 12 nxiiti- purpose projects
funded by the World Bank, AfDB, and ADB
examined by the Commissi on indicates that
esti mates of the El RR at e/al uation were
about 4% bdow those projected at appraisal .
Thisfiguremaskslarge variability with four
of the projects movi ng up and down by
al most 10%.' ' I n the A fD B's re/i ew of four
pro] ects on I y one was fi nanci al I y and
economi cal ly vi abi e."
As noted in pre/ious sections hydropov\er
pro] ects tend to perform rd ati vd y wd I in
f i nanci al terms wh i I e i rri gati on pro] ects
typical ly fai I to recover 0 & M and capital
costs I n practi ce thi s has often I ed to the
use of hydropower faci I i ti es i n conj uncti on
with a project designed for irrigation as a
way to cover the costs of the i rri gati on
facility The WCD C as Study of Grand
C oul ee dam and the C ol umbi a Basi n Pro] ect
provi des an i 1 1 ustrati ve exampi e of the cross-
subsi dies that often result from such arrange-
ments (see Box 2.9).
62
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
I n other cases, adding hydropower to an
irrigation facility is simply a way of increas-
ing the overall economic profitability of a
scheme. The design fortheAslantasDam
proceeded on this basis. A nalysis of the
irrigation component as a stand-alone
project indicated a 13% rate of return. A
stand-alone hydropower project wasjudged
not a least-cost source of power, but when
analysed in terms of just the incremental costs
and benefits of being built into an irrigation
facility the hydropower component yielded a
15.7% rate of return. C ombined, the rate of
return for the multi-purpose project came to
13.4%. Following a cost overrun in nominal
terms of 37%, the project completion team
reported a recalculated EIRR for the project in
1985, including flood control, of 13.6%,
although thevalidity of the irrigation benefit
calculations was questioned by a subsequent
post-project audit report."
I n summary, these emergi ng trends and
patterns of hi ^er vari abi I i ty and I ov\er
average performance of nxil ti - purpose versus
si ngl e- purpose proj ects are not surpri si ng.
W h i I e si n^ e- purpose dams are desi gned for
opti mal del i very of a parti cul ar targeted
benefit, nxilti-purpos proj ects are designed for
sub-optimal outputs of all intended benefits
T hey ai m to maxi mi s econoni c effi ci ency
achie/ed throu^ shared costs and infrastruc-
ture of the proposd scherre. I n doi ng 93,
nxilti-purpos schemes are inherently more
compi ex, and many experi ence operati onal
conflicts that contribute to under-perfbrmance
on fi nanci al and economi c targets
What emerges from the WCD Knowledge
Base i s that these sub-opti mal targets set for
mul ti - purpose proj ects were sti 1 1 not
achie/ed to the I e/d desired. Thissuggests
that the extent to whi ch confl i ct ari si ng
from nxiiti- benefit operati on will affect
performance is probably under-esti mated.
Physical Sustainability
Issues
M any factors affect the physical sustainabili-
ty of the benefits and services provided by
dams. The following section provides brief
findings from the Knowledge Base on three
of these issues: dam safety sedimentation
and waterlogging and salinity
Dam safety
Dam failure is defined by the International
Commission on Large Dams (IC OLD) as
the 'collapse or movement of part of a dam
or its foundation, so that the dam cannot
retain water'" In general, a failure results in
the rdeas of large quantities
of water, posi ng srious risks
for the people or property
downstream. T he f i ndi ngs of a
recent ^obal compilation of
i nformati on about the fai I ure
of dams by I COLD areas
follov«:
■ The failure rate of large
dams has been falling over
the last four decades. Of
dams built before 1950,
2.2% failed, while the failure rate of
dams built since 1951 is less than 0.5%.
■ The proportion of dams failing varies
little with the height of the dam and so
most failures involve small dams.
■ M ost failures involve newly built dams.
Some 70% of failures occur in the first
ten years of life of the dam and propor-
tionately more during the first year after
commissioning.
■ The highest failure rate is found in dams
built in the ten years 1910-1920.
■ Foundation problems are the most
common causeof failure in concrete
dams, with internal erosion and insuffi-
M ulti-purpose schemes
are inherently more
complex, and many
experience operational
conflicts that contribute to
under-performance on
financial and economic
targets.
The Report of the World Commission on Dams
63
Chapter 2
cient shear strength of the foundation
each accounting for 21% of failures.
■ The most common cause of failure of
earth and rockfill dams is overtopping
(31% as primary cause and 18% as
secondary cause). This is followed by
internal erosion in the body of the dam
(15% as primary cause and 13% as second-
ary cause) and in the foundation (12% as
primary cause and 5% as secondary cause) .
■ With masonry dams, the most common
cause is overtopping (43%) followed by
internal erosion in the foundation
(29%).
Box 2.10 Dam safety in the United States
The American Society of Civil Engineers (ASCE) gave dams in tlie United States
a poorgrade (a 'D') in tlieir'1998 Report Card forAmerica's Infrastructure' -
citing age, downstream development, dam abandonment, and lacl< of funding
for dam safety programmes as major unaddressed problems.
The Association of State Dam Safety Officials (ASDO ) concluded that:
■ Current levels of dam safety expenditures are insufficient. There are
instances when dam safety items are given a lower pnority than water or
power delivery
■ Some $40 billion is needed to maintain and improve current dams,
■ Little if any information is provided to downstream populations at nsk;
less than 10% of jurisdictions surveyed had warning or evacuation plans,
■ In many cases irrigation districts - which are required by law to share
dam safety expenses - withheld funds to pay for necessary safety items.
Continued deferment could result in unacceptable public nsks,
■ M aintenance costs continue to escalate because of the ageing
structures. With constant or declining maintenance funds from federal
and irrigation district sources, new sources of revenue are needed
According to the United States Federal Emergency M anagement Agency:
■ Dam breaks are rare and there have been few deaths in recent years.
There have been 1 449 dam failures over the past 150 years in the
United States, The annual dam failure rate was 29 in 1996 and 1997,
■ In massive floods like Hurricane Floyd's inundation of N orth Carolina in
1999, 36 dams failed but most were small and claimed no lives,
■ Failure of the Buffalo Creek dam in West Virginia in 1972 killed 125
people, while failure of the Teton dam in 1976 killed 11 and of the Kelly
Barnes dam in Georgia killed 39,
■ Of the 80 000 small and large dams in the United States, 9 325 are rated
as 'high hazard', meaning that if they should fail, loss of life and senous
property damage would result. Some 1 600 significant hazard dams are
within one mile of a downstream city
■ Less than 40% of high hazard dams have an emergency action plan for
people to follow.
Sources: ASCE 1998;
Knudsen and Vogel, 1997
Schmid, 2000: ASDSO 2000.
■ W here other works were the seat of the
failure, the most common cause was
inadequate spillway capacity (22% as
primary cause and 30% as secondary
cause).
■ T he post-failure action most frequently
reported was scheme abandoned (36%),
construction of a newly designed dam
(19%) and overall reconstruction with
the same design (16%).
When most large dam projects are built, the
asBumpti on i s that river fl ovjs i n the future
(total runoff and 9B/ere floods) will benxich
I ike those in the past. In some cases the
historical time series of hydrological data is
too short and may not reflect cycl ical
phenomena. C I i mate change has i ntroduced
another le/d of uncertai nty about chang ng
f I ovvs wi thi n the I i fe span of most dams. The
safety of I arge dams i s affected by changes i n
the magnitude or frequency of e)ctreme
precipitation events These changes are
highly uncertain, but climate change is
expected to lead (and perhaps already has
led) to larger and more frequent extreme
preci pi tati on events O ne of the f i rst studi es
i n thi s area conci uded that the di scharge of
the 50-year flood on the River Se/em, i n
the U nited Ki ngdom may i ncrease by
around 20% by 2050.'° There is concern
whether exi sti ng spi 1 1 ways can evacuate
such floods in future.
T he WC D C ross-C heck Survey shows a
trend tov\ards i ncreased attenti on to the
as^ssment of dam safety althou^ around
20% of dams i n the sub-sampi e that were
bui It i n the last three decades do not report
undertaki ng a safety assessment (see Fi gure
2.13) . A report card on the U nited States
experi ence wi th an agei ng stock of dams
provi des a soberi ng i ndi cati on of the i mpor-
tance of dam safety concerns (see Box 2. 10) .
A key element in keeping dams safe is
64
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
providing finance for proper and regular
maintenance work. A recent Ontario Hydro
Study of several hundred N orth A merican
dams indicates that, on average, hydropower
operating costs rise significantly after 25 to
35 years of operation due to the increasing
need for repairs."
Figure 2.13 Trends in dam safety assessments
Global sub-samp
e: 105 dams
110
90
ui 70
^ 50
1 30
10
0
iff)' (SP
Decade
Sedimentation
M any reservoi rs are subj ect to some degree
of sediment inflow and deposition. It is
esti mated that some 0. 5- 1% of the v\orl d
reservoi r vol ume i s I ost from sedi mentati on
annually." Sedimentation of the active
storage affects physical and economic
performance, but only where design storage
ismoreorlesfullyused." Sediment may
also cause erosion of turbi nes if it reaches
power intakes Eventually sedimentation
wi 1 1 affect project I ife by si Iti ng up the dead
storage, I eadi ng to i ntake bl ockage.
TheWCD Knowledge Base indicates that
whilesedi mentation potentially undermines
the performance of a I arge dam proj ect, the
conditi ons - and therefore the frequency of
occurrence of this phenomenon - are
project and site-specific. For example.
Source: WCD C ross-C heck Survey.
Figure 2.14 Loss of active storage due to sedimentation
Figure 2.15 Loss of active storage due
to sedimentation by reach of river
100
60
40
20
Global sub-sample: 47 dams
5 10 15 20 25 30 35 40 45
Age of dams (years)
Source: WCD C ross-C heck Survey.
Global sub-sample: 47 dams
50
°J 30
CD
o
tn
CD
S 20
u
10
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
65
Chapter 2
higher sedimentation rates are
? observed for smaller dams and for
dams located in the lower reaches
of rivers.
A nalysis of the C ross-C heck
Survey shows that more than
50% of active storage was lost
due to sediment deposition for
10% of projects in the sample, all
of which were in operation for at
least 25 years (see Figure 2.14).
But there is great variability
within this average global figure
(see Figure 2.15). In the sample,
the average loss of active storage
was greatest for reservoirs in the
lower reach of rivers.
0 f the W C D C ase Study dams, only Tarbela
faces a sedimentation problem. In this case,
the reservoir has lost 18% of live storage
after 25 years. A Ithough this is less than
predicted, the loss of storage capacity
reduces the dam's capacity to store water for
irrigation; in addition, the build-up of
sediment close to the dam is threatening
operation long before the end of its design
life. Conversely sedimentation is not an
issue in the temperate dams in the G lomma
and Laagen basin and Grand Coulee, where
sediment concentrations are negligible.
A surveyof 547 U .S. dams found that:
■ one-quarter of U .S. hydropower reservoirs
have some form of sedimentation problem;
■ 15% of owners and operators consider
these problems serious; and
■ the frequency and perception of sedi-
mentation as a problem is higher for
smaller-volume reservoirs.
Other studi es conf i rm a nurrtier of these
fi ndi ngs. Data from 42 dams i n M orocco
i ndi cate storage i s depi eti ng at the rate of
1.1% for resen/oi rs wi th storage vol umes I ess
than 500 n1 and 0.6% for larger dams."
Waterlogging and salinity
Salinisation of agricultural land is caused by
the rise of groundvvater brought about by
surface i rri gati on and i s rel ated to the
probi em of vvaterl oggi ng. W hen v\ater tabi es
are cl ose to the surface, capi 1 1 ary acti on
draws salts natural ly occurri ng i n the sol I
profi I e to the surface. Even where ground-
water use i s control I ed, secondary sal i ni sa-
tion can occur due to poor-quality ground-
water. Salinisation reduces yields of crops
that do not tol erate h i gh sal i n i ty I e/d s to
the poi nt of e/entual ly renderi ng the land
unproductive. I n I ndi a, the yields of rice and
wheat on salt-affected land were approxi-
mately half thos on unaffected land."
TheWCD Knowledge Base indicates that
probI ems of waterl ogg ng and sal i n i ty for
i rri gati on ^ems have reached srious
I e/ds globally and have severe, long-term
and often permanent impacts on land,
ag'i cul ture and I i vd i hoods I n the C ross-
C heck Survey approxi matdy one-fifth of
the I arge dam proj ects wi th an i rri gati on
component reported i mparts from waterl og-
gi ng. Data from 11 major irrigation coun-
tries i ndi cate that approxi matd y 20% of
irrigated land is affected by salinity." But
the vari ati on across countri es i n the share of
irrigated land affected by salt is also large,
rangi ng from 15% i n C hi na and 33% i n
Egypt to 80% in Turkmenistan (see Figure
2.16).
T he phenomena of waterl oggi ng and
sal i nity are not new. I n the case of G rand
Coulee dam, the unexpected rise i n ground-
water I e/ds was recognised in the early
1950Si requiring considerable additional
66
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
expenditure on drainage to control in-
creased water levels. To date, 7 300 ha have
been taken out of production through a
government-sponsored set-aside programme.
In the Indus Basin, 38% of the irrigation
system is classified as waterlogged and
production is estimated to be 25% lower
than potential as a result of salinity. Major
engineering works to remove saline effluent
have recently been implemented, but it is
too early to evaluate the effectiveness of this
approach. In justifying a major drainage
project in Pakistan, the World Bank as-
cribed a production decline of approximate-
ly 25% to salinity and waterlogging, with
specific cases reaching 40-60%.^^
A I though the need for drai nage has been
evi dent for 93me ti me, proponents have
often omitted the necessary i nfrastructure
from project plans" Drai nage facilities
have been di ffi cul t to j usti fy at the outset of
a project under pre/ai I i ng economic analysis
as the main benefit of drai nage is realised
only after some ti me, namely when the
groundwater levels have risen close to the
surface. Regardless of the
ti mi ng of actual i nvestment i n
drai nage faci I i ti es the excl u-
sion of drai nage facilities from
the original project design -
only to require remedial action
I ater - may I ead to the over-
esti mation of project net
benefits Resolving v\aterlo^ng
and sal i nity problemsentai Is
significant rehabilitation costs (underestima-
tion of project costs) and loss of productivity
over ti me (over-esti mati on of benefi .
A further difficulty is that predictions n^y
underesti mate the ti me requi red for such
probi ems to appear One caus of th i s
problem is over- irrigation. For example, in
the C hash ma project in Pakistan there was a
shift to more water-demandi ng crops such as
rice and sugarcane, and excessive irrigation
duri ng the earl y stages of proj ect de/d op-
ment when water was abundant. Asa result,
water tabi es rose more qui ckl y than expect-
ed leadi ng to the need to i nvest i n drai nage
v\orks at an earl i er date than anti ci pated.' "
Data from 11 major
irrigation countries
indicate that
approximately 20% of
irrigated iand is affected
by salinity which makes
land increasingly
unproductive.
Figure 2.16 Waterlogging and salinity
China
India
United States
Pakistan
ran
Egypt
Uzbekistan
Turkemenistan
Sub-Total
World Estimate
Values represent the total irngated
land affected by salt in millions of
hectares.
30 40 50 60
% of total irrigated land affected by salt
Source: Postel, 1999.
The Report of the World Commission on Dams
67
Chapter 2
Once drainage is in place,
recurrent costs of operation and
maintenance are often not
recovered, leading to early
degradation and a reduction in
the effectiveness of drainage
systems. A report by the I nter-
national Water M anagement
I nstitute notes that despite
improved understanding of the
process involved, the area
adversely affected by waterlog-
ging and salinity is increasing at a rate faster
than reclamation, pointing to conflicting
sector interests and priorities'^
Findings and Lessons
T he degree to whi ch I arge dams i n the
WC D Knowledge Base have del ivered
services and net benefits as planned varies
substanti al I y from one proj ect to the ne)d:
vvi th a consi derabi e porti on fal I i ng short of
physical and economic targets I n spite of
thi s the sen/i ces produced by dams are
considerable - i n the order of 12-16% of
v\orld food production, 19% of v\orld
el ectri ci ty suppi y amongst others as present-
ed in Chapter! In addition, theWCD
K nowl edge Base conf i rms the I onge\/i ty of
large dams as many conti nue generati ng
benefits- e/en if less than planned - after
30 to 40 years of operati on .
A sectoral review of technical, financial and
economic performance suggests that of the
dams i n the Knowledge Base, those:
■ designed to deliver irrigation services
have typically fallen short of physical
targets, did not recover their costs and
have been less profitable in economic
terms than expected;
■ built to deliver hydropower tend to
perform close to but still below targets
for power generation, generally meet
their financial targets but demonstrate
variable economic performance relative
to targets, and include a number of
notable under- and over-performers;
■ built for municipal and industrial water
supply have generally fallen short of
intended targets for timing and delivery
of bulk water supply and have exhibited
poor financial cost recovery and eco-
nomic performance;
■ with a flood control component have
provided important benefits in this
regard, but at the same time have led to
an increased vulnerability to flood
hazards due to increased settlement in
areas still at risk from floods, and in some
cases have worsened flood damages for a
number of reasons, including poor
operation of dams.
■ which serve a number of purposes also
under-achieve relative to targets, in some
cases exceeding the shortfalls registered
by single purpose projects, demonstrating
that the targets were often over-optimistic.
T he review of performance suggests two
further findings:
■ large dams in the Knowledge Base have a
marked tendency towards schedule
delays and significant cost overruns; and
■ growing concern over the cost and
effectiveness of large dams and associated
structural measures have led to the
adoption of integrated flood manage-
ment that emphasises a mix of policy and
non-structural measures to reduce the
vulnerability of communities to flooding.
The review also examines threats to the
physical sustainability of large dams and
their benefit flows. Based on the extent and
n at u re of t h ese t h reats t h e fi n d i n gs suggest :
■ Ensuringthesafety of dams will require
increasing attention and investment as
68
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
the stock of dams ages, maintenance
costs rise and climate change alters the
hydrological regime used as a basis for
the design of dam spillways.
Sedimentation and the consequent long-
term loss of storage is a serious concern
globally and the effects will be particular-
ly felt by basins with high geological or
human-induced erosion rates, dams in
the lower reaches of rivers and dams with
smaller storage volumes
Waterlogging and salinity affect one-fifth
of irrigation land globally - including land
irrigated by large dams - and have severe,
long-term and often permanent impacts on
land, agriculture and livelihoods where
rehabilitation is not undertaken.
Using the information on the performance
of large dams collected in the W C D Knowl-
edge Base this chapter shows that there is
considerable scope for improving the
selection of projects and the operation of
existing large dams and their associated
infrastructure. Considering the vast amounts
of capital invested in large dams, substantive
evaluations of project performance are few
in number, narrow in scope and poorly
integrated across impact categories and
scales. The resounding message is that we
need better and continued monitoring of
technical, financial and economic perform-
ance. T he next chapters turn to the envi-
ronmental and social dimensions of large
dams.
The Report of the World Commission on Dams
69
Chapter 2
Endnotes
1 The emphasis here is on the direct capital
costs of a project. Direct costs are those costs
that are incurred by public or private project
owners as part of investment and operations,
and not those that remain outside the
owner's perspective (the latter being external
costs) .
2 W CD Thematic lll.l Economic A nalysis,
Chapter 2.
3 Bacon et al, 1996, p7-8.
4 W CD Thematic lll.l Economic A nalysis.
Chapter 2; IDB, 1999.
5 Lagman, 2000, in W CD Thematic lll.l
Economic A nalysis, C hapter 2.
6 In nominal US dollar terms. Of the35 dams
in the IRN list, 11 were already accounted
for in the World Bank and IDB samples and
10 had incomplete information to calculate
the nominal cost overrunsin dollars. W CD
Thematic lll.l Economic A nalysis; M cCully
1999, ecoOei, WCD Submission.
7 The India Case Study reports on a series of
historical reports of overrunsin India,
including a 1983 study of 159 projects
showing 232% overruns. These overruns are
calculated in local currency units not U S
dollars and, thus, follow a different method
then the other studies reported in the text.
8 Bacon et al, 1996, p30; Bacon and Besant-
Jones, 1998, p321.
9 W CD Thematic lll.l Economic A nalysis,
based on OED, 1996a, p57-67.
10 AfDB, 1998, in WCD Thematic lll.l
Economic A nalysis. Chapter 2.
11 Young, 2000, eco066, WCD Submission, p3,
suggests that U S Bureau of Reclamation
projects cost on average three times as much
as is planned.
12 Financial costs of projects are determined by
projecting quantities of goods and services at
current year prices and then applying a price
escalation factor to account for expected
inflation. W hen actual inflation exceeds
expected inflation, this contributes to
overrunsin terms of cash flows (as against
original budgets) but it does not necessarily
alter the underlying real cost of the goods
and services as employed in economic cost-
benefit analysis. The real price of goods and
services used in construction - and not the
general price level - must increase at a higher
than expected rate for the real costs to
'overrun'.
13 Delays due to difficulty in reaching financial
closure do not add to interest during con-
struction changes.
14 Bacon etal, 1996, p30.
15 N ote that although regional development is
often an objective of irrigation projects, the
Commission has not found cases where it is
made an explicit objective with firm
performance targets. Such benefits are also
inherently distributional in nature and are
treated in the later section on this topic.
16 A ctual command area figures are directly
comparable with ultimate command area
targets in the Survey sub-sample as all
projects had passed the planed time frame for
achieving full command area development.
17 Cropping intensity describes the extent of
land utilisation in a year and reflects the
degree of multiple cropping. It isthe ratio of
total area cropped per year to the irrigation
command area.
18 ADB,1995, p5.
19 WCD Thematic IV. 2 Irrigation Options,
Table 3.13, Section 3.4.2.
20 OED, 1990, p4-2.
21 Barker and Dave, in print.
22 World Bank Commodities Prices Data.
23 OED, 1990, pv.
24 Eckstein, 1958, p2.
25 W orld Bank appraisals typically cite 10% as
the 'hurdle rate' which a project must exceed
to be deemed worth undertaking. The A DB
only approves projects that have an EIRR
over 12%, although in exceptional cases
those with an EIRR of less than 12% but still
more than 10% are approved; A DB, 1997,
p37, in WCD Thematic Review lll.l
Economic A nalysis. Technical A nnex I, plO-
14.
26 The sample included all 13 A DB-funded
large dams where both completion and
evaluation reports exist and a sampling of 27
large dams funded bytheWorld Bank, and
eight projects funded by the African Devel-
70
Dams and Development: A New Framework for Decision-Making
Technical, Financial and Economic Performance
opment Bank. For the full analysis see W CD
Thematic Review lll.l Economic A nalysis,
Chapter 10.
27 The present value is less than the full cost
due to the long development period and the
effect of discounting.
28 Thisassumesthat there wasno general or
sector-specific excess capacity in the
economy A sthe project began in 1945 it can
only be said that the likelihood of consistent
excess capacity in the U S economy during
the project period is low given the high
growth rates observed during this period.
29 ADB, 1995, p7; OED, 1990, p4-2.
30 Thakkar, 1999, pl7. Contributing paper to
W CD Thematic IV. 2 Irrigation Options.
31 W CD Thematic Review IV. 2 Irrigation
Options, Section 4.2.2.
32 M olden etal, 1998, pl5.
33 Johnson, 1997, p28.
34 ADB, 2000.
35 NEA,1997.
36 W CD Norway Case Study; W CD Grand
Coulee Case Study
37 Wong, 1994, in WCD Thematic Review lll.l
Economic A nalysis. Chapter 2.
38 M cCully 1997a, p5, in WCD Thematic
Review lll.l Economic A nalysis. Chapter 10.
39 AfDB, 1998, p6, in WCD Thematic Review
lll.l Economic A nalysis, Chapter2.
40 WCD Thematic Review III. 2 Financing
Trends, Chapter 2.
41 ADB, 1994, p3.
42 ADB, 1994, pl7.
43 OED, 1992, pi Executive Summary
44 M cintosh and Yniguez, 1997, pl6.
45 Whittington etal, 1991, pl93; World Bank
Water Demand Research Team, 1993, p47-52.
46 Whittington et al., 1991, pl93.
47 Shalaby, 1999.
48 Oud, pers. comm. 2000.
49 Atakpu, 1999, WCD Regional Consultation
Paper, pi.
50 Townshend, 2000, p81.
51 M acDonald and M cinally 1998, pl83.
52 WCD Thematic Review IV. 4 Flood Manage-
ment Options, section 1.2.1.
53 World Bank et al, 1996, A nnex 1, p51.
54 WCD China Country Study Chapter 2.
55 WCD Thematic Review lll.l Economic
A nalysis, C hapter 10.
56 AfDB, 1998, p6.
57 W C D A slantas C ase Study; W orld Bank, 1987.
58 ICOLD,1995.
59 ICOLD,1995.
60 Tedd, 2000.
61 McCully 1997b, p2.
62 Mahmood, 1987.
63 A ctive storage is the reservoir volume above
theouttake, whereas dead storage is the
reservoir volume below the outtake.
64 Dixon, 2000.
65 Smith, 1999, pl3.
66 Kijne etal, 1998, p26.
67 Heuperman, 1999, Contributing Paper to
WCD Thematic Review IV. 2 Irrigation
Options, Section 4.2.
68 World Bank, 1997, p3.
69 Young, 2000 eco066, WCD Submission, p3.
70 ADB, 1984.
71 Kijne etal, 1998, p26.
The Report of the World Commission on Dams
71
Chapter 3:
Ecosystems and
Large Dams:
Environmental Perform
ance
he nature of the impacts of
I large dams on ecos^^ems is
generally well known and scientists
N GO sand professional groups such
as the I nternational C ommission on
LargeDams(ICOLD), International
H ydropower A ssociation (IHA) and
the I nternational Energy A gency
(IE A) have written extensively on
them.^ A u^l irdc^cfttesodle
cfhjrren irtevaidon in thsre^dis
araBte^ir^eth^darr^ irtar-
baantrdn^e^ ardwstBrwtjrtajvsls
fcrin10tion ha^firdgvBriEcl&M cf
tjnevvohdsriyBrs^
Ecosystem impacts can be classified accord-
ing to wliethertiiey are;
■ first-order impacts that involve the
physical, chemical, and geomorphologi-
cal consequences of blocking a river and
altering the natural distribution and
timing of streamflow;
■ second-order impacts that involve changes
in primary biological productivity of
ecosystems including effects on riverine
and riparian plant-life and on down-
stream habitat such as wetlands; or
■ third-order impacts that involve
alterations to fauna (such as fish)
caused by a first-order effect (such as
blocking migration) or a second-order
effect (such as decrease in the availa-
bility of plankton).
In addition, modifying the ecosystem
changes the biochemical cycle in the
natural riverine system. Reser-
voirs interrupt the downstream
flow of organic carbon, leading
to emissions of greenhouse gases
such as methane and carbon
dioxide that contribute to
climate change.
T he current state of knowledge
indicates that large dams have
many mostly negative impacts on
ecosystems.^ These impacts are
complex, varied and often profound in
nature. I n many cases dams have led to the
i rre/ersi bl e I oss of speci es popul ati ons and
eco^ems Because the ecosystem i mpacts
are many and complex it is hard to give a
precise and detailed prediction of the
changes I i kd y to resul t from the construc-
tion of a dam or sriesof dams. Based on the
geographical location of a dam and the
natural river regimeitisposibletogvea
broad i ndi cati on of the type and di recti on of
i mpacts with decreasi ng certai nty from fi rst-
to thi rd-order i mpacts To date efforts to
counter the eco^em i mpacts of I arge dams
have had only limited success. This isdue to
I i mi ted efforts to understand the ecosystem
and the scope and nature of i mpactSj the
i nadequate approach to assesa ng e/en
anti ci pated i mpacts and the on I y parti al
success of minimisation, mitigation and
compensation measures
This chapter descri bes the nature of the
i mpacts i n general , supported by the C ase
Studies the C ross-C heck Survey and the
Thematic Re/iewson Eco^ems(ll.l) and
on Global Change (1 1. 2). Given that the
WCD Knowledge Base descri bes a large
number of eco^em i mpacts the focus i s
on summari si ng these i mpacts by g'oupi ng
themasfollov^:
■ the impacts of reservoirs on terrestrial
ecosystems and biodiversity;
■ the emission of greenhouse gases associ-
ated with large dam projects and their
reservoirs;
■ the impacts of altered downstream flows
on aquatic ecosystems and biodiversity;
■ the impacts of altering the natural flood
cycle on downstream floodplains;
■ the impacts of dams on fisheries in the
upstream, reservoir and downstream
areas;
■ the enhancement of ecosystems through
reservoir creation and other means; and
■ the cumulative impacts of a series of
damson a river system.
The extent to which efforts to reduce or
eliminate these impacts were undertaken in
the past is described at the end of each
discussion. The final subsection contains a
further assessment of past experience with
efforts to avoid, mitigate, minimise or
74
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
connpensate these impacts. C urrent efforts to
restore environmental function through
decommissioning are also reviewed.
Terrestrial Ecosystems and
Biodiversity
T he construction of a storage dam and
subsequent inundation of the reservoir area
effectively kills terrestrial plants and forests
and displaces animals. A s many species
prefer valley bottoms, large-scale impound-
ment may eliminate unique wildlife habitats
and affect populations of endangered
species.'' Efforts to niti gate the impacts on
fauna have met wi th I i ttl e siccess ( see Box
3.1). Construction of irri^ion infrastruc-
ture may have si milar i mpacts
Fl oodi ng a reservoi r may I ead to the occupa-
tion and cleari ng of upstream catchment
areas as repi acement for I and I ost to the
reservoi r. Land use change provoked i n this
manner not only has di rect effects i n terms
of habitat I os^ elimination of flora and
fauna and, in many cases land degradation,
but also feedback effects on the resen/oi r
through alterations in hydrologic function.
T he resul ti ng I oss of vegetati ve cover I eads
to i ncreass i n sedi mentation, stormflow,
and annual water yield; decreases in vvater
qual ity; and variable changes i n the seasonal
timingof v\ateryield.'
Greenliouse Gas Emissions
The emission of greenhous gases (GHG)
from reservoi rs due to rotti ng vegetation and
carbon i nfl ows from the catchment i s a
recently identified eco^em i mpact (on
cl i mate) of storage dams.' A fi rst esti mate
suggests that the gross emi ssi ons from
reffirvoi rs may account for between 1% and
28% of the ^ obal warmi ng potenti al of
GHG emissions' This challenges the
conventional wisdom that hydropov^r
produces only positive atmospheri c effects
such as a reduction in emi ssi ons of carbon
dioxide, nitrousoxides sulphuric oxides and
particulates when compared with power
generation sources that burn fossil fuels' It
also implies that all reservoirs- not only
hydropov\er reservoi rs-emitGHGs
Consequently reservoi rand catchment
characteri sti cs nxist be i nvesti gated to fi nd
out the likely I e/d of GHG emissions
A 1 1 1 arge dams and natural I akes i n the
boreal and tropical reg ons that have been
measured emit g^een house gases (carbon
dioxide, methane, or sometimes both) (see
Figure 3.1 and 3.2).' Figure 3.1 showsthe
range of val ues recorded by f i d d measure-
ments and modd s of G H G emi ssi ons for 15
reservoirs" Somevaluesforg^ossGHG
emi ssi ons are extremd y I ow and may be 10
times I ess than the thermal option. Yet in
some ci rcumstances the g^oss emi ssi ons can
be consi derabi e, and possi bl y greater than
thethermal alternatives" These emi ssi ons
may change significantly over ti me as the
Box 3.1 Mitigating and compensating for terrestrial impacts
Some large dam projects have tried to mitigate terrestrial Impacts on
biodiversity by physically rescuing animals from the area to be flooded or by
anticipating that mobile species will simply move to neighbouring areas.
Operation Noah and Operagao Curupira are two examples undertaken at Kariba
and Tucurui dams. The respective WCD Case Studies show that neither
programme yielded tangible benefits for the wildlife involved. This may be a
result of the implicit and probably incorrect assumption that the recipient
habitat was not already at carrying capacity for the species concerned
An alternative to mitigation is a compensaton/ project approach, or environmen-
tal 'offsets'. For example, in India there is a legal requirement that forests
flooded by reservoirs must be replanted elsewhere However, the India Case
Study found that only half of the required forest has typically been planted - and
even this is poorly managed, yielding little In the way of comparable benefits or
services. Additional compensatory measures may include either trust funds
established through grants from developers (forexample Harvey Basin
Restoration Trust, Australia) or trust funds that manage parts of the revenue
stream and use It for environmental purposes. This latter model Is proposed for
the planned N am Theun II dam In Laos, with the intention of creating and
managing a N ational Park in the catchment. The plan has the potential to
benefit both forest ecosystems and the lifespan of the dam through reduced
sedimentation
Sources: WCD Kanba, Tucurui and India Case Studies: Bizer 2000
The Report of the World Commission on Dams
75
Chapter 3
biomass decays within the reservoir during
the first few years of impoundment. In other
cases the emissions may depend more on
carbon inflows from the catchment in the
longer term and have greater stability over
time, subject to catchment conditions.
Figure 3.1 Gross greenhouse gas emissions from reservoirs
o
u
I
ID
4 500
4 000
3 500
2 500
2 000
1 500
1 000
500
t
Canada
Finland
Source: WCD T hematic R eview 11.2 G lobal C hange
N ote: A verage measured emissions of greenliouse gases from 15 reservoirs in boreal
andtropical regonssliow large variations witliin countries and b^een regions These
averages masJ: strong seasonal and annual variations "
Establishing that a reservoir emitsG H Gs is
not enough to assess the impact of a dam on
climate change. Natural habitats (undis-
turbed by dams) may also emit G H G s (see
Figure 3.2). A Iternatively they may store
carbon or act as a net carbon sink. For
example, a floodplain tropical forest in
A mazonia may emit methane from soils and,
at the same time, absorb carbon dioxide in
leaves. The balance of all these potentially
counteracting effects would determine the
profile of G H G emissions from the natural
habitat without the dam. A further compli-
cation isthat the land use change induced
by displacement of people, resource extrac-
tion and other economic activities may also
form part of the net contribution to G H G
emissions associated with the construction
of the dam. C alculations of the contribution
of new reservoirs to climate change must
therefore include an assessment of the
natural pre-dam emission or sink in order to
determine the net impact of the dam."
T he W C D C ase Studi es on I y provi de data
on carbon dioxide and methane emissions
from the Tucurui reffirvoir(9eeBox3.2).
Figure 3.2 Greenhouse gas emissions from natural habitats
o
u
ID
I
ID
OJ
ai
QJ
>
<
3 500
2 500
2 000
1 500
1 000
500
0
-500
-1 000
Others
• Indonesian
wetland rice
Natural lakes
Forest ecosystems
•
• Amazon floodplain
• N orthern peatlands
•
1
• Tropical forests
Boreal forests
Source: WCD T hematic R eview 11.2 G lobal C hange.
N ote: N atural habitats may be sources ( positive values) or sinks ( negative values) for carbon. E missions from dam reservoirs in C anada and Finland
(Fig 3. 1) are at similar levels to natural lakes.
76
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
Even in this case there is no data on emis-
sions without the dam, mal<ing a conclusion
on the net effect impossible. This applies
more generally to other dams that have
even less information available. Current
understanding of emissions suggests that
shallow, warm tropical dams are more likely
to be major G H G emitters than deep cold
boreal dams.
I n the case of hydropower dams, tropical
dams that have low installed capacity and
large shallow reservoirs are more likely to
have gross emissions that approach those of
comparable thermal alternatives than those
with small, deep reservoirs and high in-
stalled capacity.
Todatei noexperienceexistswith rrinirriang
rri ti gati ng or compensati ng thes i mpacts
Pre-inundation rerroval of venation is one
alternative, but the net effects of such an
activity are not v\el I understood. T he outcome
of ^ obal negoti ati ons on cl i nBte chan^ may
bear on future penal ties and incentivesfornd:
GHG erri si ons from dams
Downstream Aquatic
Ecosystems and
Biodiversity
storage dams are intended to alter the
natural distribution and timing of stream-
flow. T hey compromise the dynamic aspects
of rivers that are fundamental to maintain-
Box 3.2 Greenhouse gas emissions at Tucurui, Brazil!
Recent monitoring in tlie 2 600 l<m^ reservoir of Tucurui sliow tliat
greenhouse gas emissions are substantial and highly variable from
yearto year Values in 1998 exceeded those measured in 1999 by
more than a factor of 10 for methane and by 65% for carbon dioxide
(see table below)"
Total Gross Emissions (tons/kmV year)
Year i^lethane Carbon dioxide
1998
1999
76,36
5,33
3 808
2 378
M odelling taking into account emissions from water passing through
the turbines or over the spillway leads to higher estimates of tota
emissions.'' The figure below compares these gross emissions to
those of alternahve technologies for large-scale power genera-
tion." Background emissions from natural pre-impoundment
habitats have not yet been measured forTucurui, so true compari-
sons of net emissions with alternatives remain elusive.
The alternative technology for large-scale electncity generation
required for aluminium smelting (the main consumer of electncity)
was thermal power employ ng diesel fuel when the project was built
in the 1970s. Today the alternative would be gas combined cycle
plants.
Source: WCD Tucurui Case Study
2 500
2 000
g
1 500
d"
u
w
1 000
OJ
iz
500
0
Range of annual gross G HG emissions at Tucurui Hydropower Project and four thermal alternatives
: : : : i::: : : : : : :
1 :■:=. i
Tucurui^ Tucurui'' Tucurui'- Gas Diesel" Heavy oil" Bituminous
combined coal^
cycle'-
Sources: =Feamside, 1995: 'Rosa et al, 1999: 'Fearnside, 2000: lEA, 2000.
The Report of the World Commission on Dams
77
ing the character of
aquatic ecosystems.
N atural rivers and
their habitats and
species are a function
of the flow, the quanti-
ty and character of the
sediment in motion
through the channel,
and the character or
composition of the
materials that make up the bed and banks of
the channel. The defining river discharge
includes both high- and low-flow elements.
These dynamics, not the average conditions
of controlled dam operations, determine a
stream's physical foundation, which in turn
ensures ecosystem integrity
The extent of impacts will also depend on
whether water is extracted or diverted for
consumption, or left instream. Introduction
of non- native species modified water
quality (temperature, oxygen, nutrients),
I OSS of ^em dynami cs and I oss of the
abi I ity to mai ntai n conti nuity of an ecosys-
tem result in ecologically modified river
^ems. T he estabi ishment of a new dynam-
Box 3.3 How one dam has affected two different species in opposite
ways
Before it was dammed, the Waitaki River in N ew Zealand was highly unstable,
flooded frequently, and had a constantly changing channel. After damming the
nverflood runoff is now stored in the reservoirto produce electricity This
ncreased the stability of the sandbars downstream, allowing colonisation by
vegetation, which further stabilised the channel. The increased flow stability has
benefited Chinook salmon {Oncorhynchus tshawytscha) populations, an exotic
species introduced in the early 1900s, because the more stable channels provide
more shelter for fry at high flows as well as a larger area of spawning gravel
Currentlythe Waitaki has the largest population of salmon in New Zealand.
However, the beneficial change for salmon has been detrimental to the black
stilt {Himantopus novaezealand/ae) - a native species. This bird is so endangered
that fewer than 100 individuals remain. They nest exclusively on the large
exposed sandbars isolated from the shore, a habitat that was maintained by the
unstable nature of the nver The vegetation that has proliferated and stabilised
the gravel bars has increased the cover for predators, which in turn have exacted
a significant toll on adult stilts, eggs, and nestlings.
Source: Ligon et al, 1995, cited in WCD
Thematic Review 11,1 Ecosystems
i c has posi ti ve effects on S3me speci es and
ne^i ve effects on others (see Box 3.3) .
Impacts of changes in flow
regimes
Flow regimes are the key driving variable for
downstream aquatic ecosystems. Flood
timing, duration and frequency are all
critical for the survival of communities of
plants and animals living downstream.
Small flood events may act as biological
triggers for fish and invertebrate migration:
major events create and maintain habitats
by scouring or transporting sediments. The
natural variability of most river systems
sustains complex biological communities
that may be very different from those
adapted to the stable flows and conditions of
a regulated river Finally water temperature
and chemistry are altered as a consequence
of water storage and the altered timing of
downstream flows. A Igal growth may occur
in the reservoir and in the channel immedi-
ately downstream from dams because of the
nutrient loading of the reservoir releases.
Self-purification processes diminish this
effect downstream.
Storage dams, particularly hydropower
peaking plants, can significantly disrupt the
whole flow regime, resulting in both high
seasonal and day-to-day fluctuations that
differ greatly from natural flow levels. A s
shown in Figure 3.3, the construction of
Glen Canyon dam on the Colorado River in
the U nited States reduced daily average
flows during the annual September peak from
about 2 000 mVsc to about 700 mf /sec. I n
addition, as shown in Figure 3.4, streamflow
can fluctuate daily more than 425 mVsec
due to dam rd eases for el ectri ci ty generati on
duri ng the peak dayti me demand periods
T hese changes i n f I ow have dramati cal I y
altered the riveri ne envi ronment, creati ng
consi stenti y col der temperatures due to
78
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
release of water from the bottom of the
reservoir. A general decline in native fish
abundance in the Colorado River is attribut-
ed specifically to the cold-water release from
large dams there. The population of the
fish Tandanus tandanus in A ustralia's M urray
River disappeared due to short-term fluctua-
tions in water level caused by reservoir
releases in response to downstream water-
user requirements."
Figure 3.3 |V| odification of annual flow regimes due to a hydropower dam, Colorado River at Lee's
Ferry, United States
60
40
20
0
1922-1931 before dam
"1982-1991 after dam
N*"" <,^^ / 4.*-^ x-^^
V x,-^ x,"
Source: D ata from U nited States G eologcal Survey, 2000.
Figure 3.4 Fluctuation of daily streamflow regime due to hydropower peaking operations, Colorado River at Lee's Ferry,
September
25
20
15
d 10
I 5
c,^^ c,^^ c,e^ cf cf cf cf cf cf cf cf cf cf cf o"^
^ ^ <>' %*' ^ ^ n>' ^ ^ n>' ^ ^ ^' ^
Source: D ata from U nited States Bureau of Reclamation, 2000b.
N otes: Peak flows are associated witli the power generation between 14. 00 and 19. 00 daily, with minima at 04. 00 am, and
the fluctuation in demand also varies from day to day.
The Report of the World Commission on Dams
79
Chapter 3
The modified liabitats
resuiting from iarge dams
often create
environments that are
more conducive to non-
native and exotic plant,
fisl), snaii, insect, and
animai species.
Particularly high hydropower
dams cause gas to become
supersaturated when water flows
over the spillway This causes
fish deaths due to a condition
similar to the bends that can
affect divers who dive too deep
for too long. T he G rand C oulee
C ase Study reports that this is a
particular problem on the
Columbia River in theU nited States, where
regulators have fixed a maximum total
dissolved gas concentration to reduce
impacts on migratory fish.
The modified habitats resulting from large
dams often create environments that are
more conducive to non-native and exotic
plant, fish, snail, insect, and animal spe-
cies.^^ These resulting non- native species
often out-compete the natives and end up
modifyi ng eco^emsthat may become
unstable, nurture disase vectors or are no
I onger abl e to support the hi stori cal envi -
ronmental and social components
Compared with a natural river, the root
systems of pi ants i n ri vers bd ow dams
experience reduced effects of
scour, the pi ants themselves
suffer I ess stress from high
discharges and the rate of chan-
nel mig'ation is reduced, SDthat
an area of the channel -bed
aval I abl e for the de/d opment of
aquatic pi ants can bestabilisd.
I n both A f ri ca and A ustral i a, the
d i mi nati on of hi ^ di scharges to
flush ^emshasallov\edthe
e)d:ensi ve devd opment of the
aquatic v\eedsWater Hyacinth (Eichhornia
crassipes) and Water Fern {Salvinia moles-
ta)P TheOrangeRiver Pilot Studydocu-
ments the col oni sati on by reeds (Phragmites
australis) of 41 000 ha of riverbed has
occurred as a result of stabilised flows on the
0 range River
Biological linkages also extend laterally
away from and parallel to the river, pushing
the effect of river changes onto a band of
varying width. A s long as the river flow is
sufficient, other wildlife such as deer,
antelope, and elephants will come to the
water, especially in the dry/hot season, to
drink. H ippos in Africa will use water of
sufficient depth as a daytime refuge, emerg-
ing to forage at night. M any species of birds
and bats fly in to drink. These lateral
movements can extend to several kilometres
from the river Thus many wildlife species in
a fairly wide strip of land on either side of
the river depend upon it, and they may all
be affected when the flow of the river is
disrupted by the construction of a large dam.
Equally long reservoirs that extend many
kilometres up river valleys present a barrier
for terrestrial species inhabiting each
riverbank that were previously able to cross
the river
When watersof one basin are diverted into
another one, changes in volume and season-
ality of flow result. N ew biota from the
source basin may invade the recipient basin
and compete with the native species. If all
the water is diverted from the source basin,
this will clearly have serious impacts on any
unique species or genetically different stocks.
1 n South A frica, for example, the diversion of
the Orange River into the Great Fish River
resulted in a six-fold increase in flow, making
the Great Fish River permanent rather than
intermittent. T he 0 range R iver C ase Study
reports that one beneficiary is the larvae of
theblackflyS/mu//um chutteri, which does
not tolerate desiccation. In the absence of
control measures, this biting fly causes live-
80
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
stock losses, reduces recreational use, and
irritates local farmers.
Efforts to minimise the impacts of changes
in flow regime have relied on measures to
restore the streamflow regime through the
setting of environmental flow releases (EFR)
(see Box 3.4)
Impacts of trapping sediments
and nutrients behind a dam
T he reduction in sediment and nutrient
transport in rivers downstream of dams has
impacts on channel, floodplain and coastal
delta morphology and causes the loss of
aquatic habitat for fish and other species.
C hanges in river water turbidity may affect
biota directly. For example, plankton
production is influenced by many variables,
including turbidity. If this is reduced due to
impoundment, plankton development may
be enhanced and may occur in new sections
of a river.
Reduction in sediment moving downstream
from the dam leads to degradation of the
river channel below the facility." Thiscan
I ead to the el i mi nati on of beaches and
backwaters that provided native fish habitat,
and the reducti on or d i mi nati on of ri pari an
vegetation that provides nutrients and
habitat for aquatic and v\0terfowl species
among others I mpoundi ng rivers i nvariably
results i n i ncreased degradati on of coastal
deltas due to reduction in sediment input.
For exampi e, the si ow accreti on of the N i I e
Delta v\as reversed with the construction of
the Delta barrage in 1868. Today, other
dams on the N i I e, i ncl udi ng the A swan
H igh Dam have further reduced the
amount of sedi ment reachi ng the del ta. A s a
result, much of the delta coasti i ne is erodi ng
by up to 5-8 metres per yean but i n places
this exceeds 240 metres per year' "
T he conaquence of reduced sedi ment al so
extends to I ong stretches of coasti i ne where
the erosive effect of waves i s no I onger
sustai ned by sedi ment i nputs from rivers 1 1
i s esti mated that the coasti i nes of Togo and
Beni n are bei ng eroded at a rate of 10-15
metres a year because the A kosDmbo dam
on the Vol ta River i n G hana has halted the
sedi ment supply to the sea." Another
example is the Rhone River in France,
where a sri es of dams has reduced the
quantity of sedi ment transported by the
river to the M editerranean from 12 mil I ion
tons i n the 19* century to only 4 to 5
million tons today" This has led to erosion
rates of up to 5 metres per year for the
beaches i n the regi ons of the C amargue and
the Languedoc, requi ri ng a coastal defence
budget runninginto millions of dollars
M easures for mi ti gati ng the i mpacts of trap-
pi ng sdi ments and nutri ents are I i mited.
Where feasible, flushingsdi ments can be part
of a progBmrre of rTBnaged fl ood rd eaffis
Box 3.4 Minimising impacts of clianges in streamflow regimes:
environmental flow requirements
At least twenty-nine countries seek to minimise ecosystem impacts from large
dams by using an EFR to meet predetermined ecosystem maintenance
objectives. The practice of EFRs began as a commitment to ensuring a
'minimum flow' in the nver (often arbitrarily fixed at 10% of mean annual runoff).
It has since grown to include a definition of ecosystem requirements and a
planned flow release programme, which may vary annually or seasonally to
meet downstream needs for both the environment and people. The level of EFR
required is determined by the need to maintain particular ecosystem compo-
nents downstream, often with reference to national legislation. The countnes
that use this method have recognised that a short-term reduction in financial
returns from a project often leads to improved long-term sustainability and
attainment of broader societal objectives for a healthierenvironment. Still, this
represents a re-distributlon of the benefits of a dam project and thus existing
beneficiaries such as irngators and operators of hydropower facilities may resist
EFRs,
Amongst the W CD Case Study large dams, only Grand Coulee has an environ-
mental flow requirement, in this case consisting of a specially designed release
forflow augmentation forsalmon, while avoiding high total dissolved gas
concentrations. Implementation of a planned release to maintain downstream
ecosystems is being considered for the Orange River In South Africa.
Sources: Brown et al, 1999, Contnbuting Paperfor WCD Thematic Review II. 1
Ecosystems: Tharme, 2000
The Report of the World Commission on Dams
81
Chapter 3
Blocking migration of aquatic
organisms
Asa physical barrier the dam disrupts the
movement of species leading to changes in
upstream and downstream
species composition and even
species loss. River-dwelling
species have several migratory
patterns. T hese include anadro-
mousfish such as sal men and
catadromousfish such as eels.
A dults of the former migrate up
rivers to spawn and the young
descend, while the reverse occurs
with the latter. But many other
freshwater fish move up rivers or
their tributaries to spawn, while the glochid-
ia larvae of freshwater mussels are carried by
Box 3.5 Mitigation measures: fisli passes
Fish passes are often used as an engineered mitigation measure for reducing
impacts on fish. However, ver/few of the over 400 large dams in Australia have
fish passes of any description, only 16 had been constructed on the 450 large
dams In South Afnca by 1994, and only 9.5% of 1 825 hydropower dams in the
United States have an upstream fish pass facility An example is Idaho Power
Company which built fish passes into each of its dams in the Hells Canyon
Complex. However, all were unsuccessful and salmon no longer migrate above
Hells Canyon Dam
The Glomma and Laagen Case Study reports that there are 34 fish passeson the
40 dams in this Norwegian basin. Of these only 26% work with 'good efficiency'
41% work less well, and as many as 32% are not working at all. In general, the
efficiency is considered low, and fish migrations are severely affected. At Pak
M un Dam in Thailand, the case study documents the ineffectiveness of the fish
pass, especially for the large migratory species in the M ekong that may be up to
two metres long and cannot fit through the 15x20 cm slots. Grand Coulee
Tucurui, Tarbela and Aslantas have no fish passes despite having migratory fish
species in the river
Even when fish passes have been installed successfully migrations can be
delayed by the absence of navigational cues, such as strong currents. This
causes stress on the energy reserves of the fish, as anadromous fish such as
salmon do not feed during migration.
Recent research in Australia, the United States, and J apan has shown that fish
passes need to be modified to meet the needs of each species and the
particular situation at each dam. They cannot simply be considered an easily
transferable technology as shown by the Pak M un fish pass, which used a
design appropriate for leaping trout and salmon in mountain streams, but which
was ineffective forspecles living in the slower-flowing Mekong.
Sources: Australia in Blackmore, pers, comm. 2000: South Africa in Benade,
pers, comm. 1999: USA in Francfort et al, 1994, Executive Summary pvlii:Collier
et al, 1996, p22, Lannier, 2000, Contributing Paperfor WCD Thematic Review
11,1 Ecosystems
As a physical barrier the
dam disrupts the
movement of species
leading to changes in
upstream and
downstream species
composition and even
species loss.
host fish. To help counteract the drift
downstream of their larvae, aquatic insect
adults such as mayflies and stoneflies move
upstream to lay their eggs." Dams block
these ni grati ons to varyi ng deg'ees.
T he WC D C ross-C heck Survey found that
i mpedi ng the passage of mi gratory f i sh
speci es vvas the most si gi i f i cant eco^em
i mpact, recorded at over 60% of the projects
for which responds on environmental issues
were g ven. I n 36% of these cases the
i mpact of the I arge dam on mi g'atory fi sh
was not anticipated during project planning.
M i g'atory fi sh requi re different envi ron-
ments for the mai n phases of thei r I i fe cycl e:
reproduction, production of juveniles
growth, and sexual maturation. Many
anadromous fish populations such as salmon
and shad have di ed out as a result of dams
bl ocki ng thei r mi g'atory routes T he stur-
geon populations in the Caspian Sea now
rd y on stocki ng from hatcheri es ( mai nl y i n
I ran) , as dams bui It by the former Sovi et
U nion on rivers enteri ng the sea halted
natural spawning migrations''
Detailed studies in North America indicate
that dam constructi on i s one of the maj or
causs for freshv\0ter speci ese)ctincti on. For
example, a study of the threatened fish of
0 kl ahoma suggested that the I oss of f ree-
flowi ng river habitat due to reservoi rs had
led to 55% of the human- i nduced species
1 osSi whi I e a further 19% v\as caused by
dams acting as barriers to fish migration."
T he best-documented examples of disrupted
f i sh mi g'ati ons are from the C ol umbi a R i ver
i n the U nited States where many stocks of
salmon have been lost. The impact of these
disruptions on the productivity of the
f i shery are descri bed bd ow.
82
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
Fish passes are typically used where efforts
are made to mitigate the effect of dams in
blocking migrations of fish (see Box 3.5).
Floodplain Ecosystems
Reduction in downstream annual flooding
affects the natural productivity of riparian
areas, floodplainsand deltas. The character-
istics of riparian plant communities are
controlled by the dynamic interaction of
flooding and sedimentation. M any riparian
species depend on shallow floodplain
aquifers that are recharged during regular
flood events. Dams can have significant and
complex impacts on downstream riparian
plant communities. H igh discharges can
retard the encroachment of true terrestrial
species, but many riparian plants have
evolved with and become adapted to the
natural flood regime.
Typically, riparian forest tree species are
dependent on river flows and a shallow
aquifer, and the community and population
structure of riparian forests is related to the
spatial and temporal patternsof flooding at
a site. For example, the Eucalyptus forests of
the M urray floodplain, A ustralia, depend on
periodic flooding for seed germination, and
headwater impoundment has curtailed
regeneration.^" Conversely, artificial puiss
generated by dam rd eases at the vvrong ti me
- in ecological terms - are recognisd asa
caus of forest destruction. For example,
A cacia xanthophloea is disappearing from the
Pongolo system below Pongolapoort dam.
South A frica, as a result of the modified
flood regime."
T he control of fl oodv\aters by I arge dams^
whi ch usual ly reduces fl ow duri ng natural
f I ood peri ods and i ncreases fl ow duri ng dry
periodSi leads to a discontinuity in the river
^em. ThiSi together with the associated
loss of floodplain habitat^ normally has a
marked negative i mpact on fish diversity
and productivity. The connection betv\een
the river and floodplai n or backwater
habitats is essential in the life history of
many ri veri ne fi sh that have e/ol ved to take
advantage of the seasonal floods and us the
i nundated areas for spawni ng and feedi ng.
Loss of this connection can lead to a rapid
decline in productivity of the local fishery
and to exti ncti on of some speci es A ddi ti on-
al ly dewateri ng of stream chan-
nel s i mmedi atd y downstream
from dams can be a seri ous
problem.
Thedirect lossof annual silt and
nutrient replenishment as a
consequence of upstream i n>
poundment is thought to have
contri buted to the gradual I oss of
ferti I ity of formerly productive
floodplain sol Is as used in agri-
culture and flood- recession
ag'i culture. Dramatic reductions in bird
speci es are al so known, especi al I y i n down-
stream floodplain and ddtaareaSi where
wetlands may not be replenished with v\ater
and nutrientsonceadamisinstalled.
Fi nal ly recharge of groundwater i n flood-
plain areas isseverdy diminished once
fl oods are d i mi nated.^ ^
I n Africa, the changed hydrological regirre
of ri vers has adversl y affected fl oodpl ai n
agriculture, fisheries pasture and forests that
constituted the organ i si ng dement of
community I i vd i hood and culture. Econom-
ical I y i mportant v\etl ands i n A f ri ca i ncl ude
ri ver f I oodpl a\ns, freshwater I akes and
coastal and estuari ne envi ronments I n the
Sahd , there are maj or wetl ands i n the Dd ta
Interieurof the River Niger in Mali and
In Africa, the changed
hydrological regime of
rivers has adversely
affected floodplain
agriculture, fisheries,
pasture and forests that
constituted the
organising element of
community livelihood
and culture.
The Report of the World Commission on Dams
83
Chapter 3
Lake C had (on the border between N iger,
C had, Cameroon and N igeria). These have
counterparts elsewhere in semi-arid A frica,
notably the Sudd in Sudan and the 0 kavan-
go Delta in Botswana, and in humid areas,
such as the swamps of eastern Zai re.
Some of these wetlands cover extensive
tracts of land. T he fringing floodplain of the
Senegal River covers some 5 000 km^ in
flood, and shrinks to 500 kni in the dry
seasDn. Thefring ng floodplain of the Niger
covers about 6 000 kni in the flood season,
shrinking to about half that at low water,
while the N iger Inland Delta extends to
20 000 to 30 000 km' in the flood sason,
shrinkingto4 000kn1 at low water. In the
Logone-C hari system, flooding covers some
90 000 km'."
Efforts to restore floodplain eco^em
functions rely on re/ersi ng the effects of the
dam throu^ a prog'am of managed floods
desi gied to si mul ate the fl oods that oc-
curred pri or to the dam ( Box 3.6) .
Box 3.6 Restoring ecosystem function through managed floods
The WCD Knowledge Base includes a number of cases where artificial floods
have been released from large dams to regenerate the natural resource base of
downstream floodplains for local livelihoods (for example M anantali dam in M al
and Senegal and the Pongolapoort dam in South Africa), M anaged floods
generate economic benefits when downstream communities depend on natural,
flood-maintained resources such as grazing, flood-recession agnculture and
fishing (see Chapter 4). For example, on the Tana River Kenya, a released flood
from the planned Grand Falls scheme would have a net present value of at least
$50 million forthe downstream floodplain economy. Managed floods also entai
an opportunity cost which may be greater or lesser depending on the value of
the released floodwaters to the dam for irngation, hydropower or other uses, A
set of preliminary studies show that in some cases there are clear net economic
benefits to these releases and In other cases the opportunity costs exceed the
value of downstream benefits that were identified, quantified and valued in
economic terms. The potential for managed floods Is often constrained by the
design of the sluice-gates, sedimentation In the reservoir and in downstream
channels and the development of infrastructure on areas previously prone to
flooding. Another constraint may be the political will to support traditiona
means of livelihood at the expense of benefits from the dam
Source: Acreman et al, 2000, Contributing Paperto
WCD Thematic Review 11,1 Ecosystem Impacts: Grand Falls in Emerton, 2000
Fisheries
A s indicated earlier, the blockage of sedi-
ment and nutrients, the re-regulation of
streamflow, and elimination of the natural
flood regime can all have significant,
negative effects on downstream fisheries.
M arine or estuarine fisheries are also nega-
tively affected when dams alter or divert
freshwater flows. Still, productive reservoir
fisheries can follow from dam construction,
although they are not always anticipated or
part of project design proposals.
Substantial losses in downstream fishery
production as a result of dam construction
are reported from around the world. A long
with subsistence agriculture, fisheries
constitute an important livelihood activity
among large rural populations in the devel-
oping world. M any of these households
depend on fisheries either as a primary or
supplementary source of livelihood. For
example, the partial closing of the river
channel by Porto Primavera dam in Brazil
blocked fish migration and diminished
upstream fish catch by 80%, affecting
livelihoods." In areasof rich fish species
diversity such as the lower Mekong region
in East Asia, community livelihoods and
culture are v\oven around fisheries T he Pak
Mun Case Study reports a drastic decline in
upstream fi sh catch once the dam had
effectively blocked fish migration from the
M ekong River upstream i nto tri butaries of
the large M un River vvatershed.
Data on the losses to downstream fishery
production as a result of dam construction
are reported from ri ver basi ns i n A f ri ca as
well. For example, 11 250 tonnes of fish per
year from the Senegal R i ver system were I ost
following dam construction." Studieson
the N iger have shown that fish productivity
i ncreass I i nearly with the vol ume of river
84
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
Other basins in the WCD Knowl-
edge Base reporti ng I oss i n f i sh producti on
i nclude the yaeres in Cameroon, thePongo-
lo flood plain in South A frica, and the
N iger in West Africa below Kainji dam."
A dverse i mpacts have been felt i n the delta
and estuary areas in the I o\wer Vol ta regon,
i n the N i le delta, and on the Zambezi i n
Mosmbique."
Freshv\0ter f I ows al so hd p support marl ne
fish production as many marl ne fish spawn
i n estuaries or deltas A decrease i n freshwa-
ter fl ow and i n n utri ents due to dam con-
struction affects the nursery areas in a
number of ways i ncl udi ng i ncreasi ng
sal i n i ty al I owl ng predatory marl ne f i sh to
i nvade, and reduci ng the aval I abl e food
supply These impacts are v\el I illustrated by
the effect of the A swan High Damon the
coastal watersof the Mediterranean, where
reducti on i n nutri ents transported to the sea
has lov\ered production at all trophic le/ds
resuiti ng i n a decl i ne i n catches of sardi nes
and other fish." I n the Zambezi ddta, the
impact of modified seasonal flows on local
shri mp fi sheri es has been esti mated at $10
million per year."
Dams can enhance some riverine fisheries
parti cul arl y tai I water f i sheri es i mmedi atd y
bd ow dams that benefi t from di scharge of
n utri ents from the upstream resen/oi r I f
di scharge i s from the I ower I ayer of water i n
the resen/oi r, I owered temperatures i n the
recdvi ng tai I v\ater can curtai I or d i mi nate
warmwater ri ver fi sheri es and requi re
stocki ng wi th exoti c col dv\ater speci es such
as sal moni ds (assumi ng that the water i s
sufficiently oxygenated). Productivetailv\a-
ter fi sheri es targeti ng these col dwater fi sh
can result but general I y requi re supplemen-
tal hatchery programmes and the i ntroduc-
ti on of col dwater i nvertebrates to serve as
food for thesfish."
Producti ve reservoi r fi sher-
i es often fol I ow from dam
construction, although they
are not al ways anti ci pated
or part of proj ect desi gi
proposals While practically
all the WCD Case Study
dams have resen/oi r f i sher-
ies predictions of fish
production were made i n
only three cases In thecaseof Aslantas
consultants esti mated a production of 580
tonnes and actual figures are 86- 125 tonnes
(for 1987-95) . At Pak M un, actual produc-
tion came to only one- tenth of prediction.
I n both cases targets were not met as the
predictions depended parti yon afunctional
stocki ng programme that was not ful ly
i mpl emented. A t Karl ba esti mates were
made for the arti sanal fi shery but not for the
more productive open- water commercial
fishery
On the other hand, an unanticipated but
productive fishery has de/d oped in Tucurui.
I n addition to commercial production at
Tucurui, a local sport-fishing industry has
de/d oped around the sought-after Peacock
Bass C ichia oce//ar/s (known in Tucurui as
tucunare), Kariba has seen a similar develop-
ment of a vibrant sport fishery. A t G rand
C oulee, the lack of a fish pass deprived
salmon of over 1 000 kilometres of upstream
spawning grounds, and affected First N ations
tribes in the United States and Canada,
while a fish hatchery largely maintained
salmon numbers (but not genetic diversity)
in downstream runs in the U nited States.
Data from before and after the construction
of Tucurui illustrate the changing nature of
species composition and fish production in
the downstream, reservoir and upstream
areas. T he experimental catch data docu-
ment that the number of species found in
The Report of the World Commission on Dams
85
Chapter 3
each of the three areas has declined signifi-
cantly (by 30-50 species) following im-
poundment. The data suggest that in total
11 species are no longer found in these areas
(see Figure 3.5a). Within the reservoir and
to a lesser degree upstream, species now
include more piscivorous species at the
expense of the detritivores that were more
common prior to construction. In produc-
tion terms, the harvest upstream of the
reservoir remained stable for the first 10
years or more, but now appears to be in-
creasing (see Figure 3.5b). M eanwhile, the
downstream fishery has shown a continued
downward trend. H owever, the reservoir
fishery has expanded tenfold in the last 20
Figure 3.5 Decline in species numbers but increase in fisheries
productivity, Tucurui (a&b)
m
200
150
- 100
50
Pre-impoundment
Post-impoundment
(a)
Downstream
Reservoir
Upstream
Total
(b)
Source: WCD Tucurui C ase Study.
years, with the result that the total fishery
(upstream, downstream and in the reservoir)
has tripled in size to 4 700 tonnes per year
since the dam was created.
Mitigation or compensation measures have
been used to reduce the impacts of changes
in fisheries. Fish passages are the most
prevalent measure and have been of limited
applicability and usefulness (see Box 3.5).
C ompensation measures consist of fish
hatcheries and stocking programs designed
to reproduce the productivity of the fishery
Ecosystem Enhancement
The WCD Knowledge Base provides a
number of examples of the ecosystem
enhancement effects of large dams. The
C ase Studies show, for example, that pro-
ductive wetlands have been created by
pumping G rand C oulee water through a
previously dry area in the Columbia River
Basin, and along the shores of Lake Kariba,
with considerable wildlife and tourism
values resulting.
Some reservoirs support globally threatened
reptiles (for example H illsborough dam,
Trinidad), and others have been declared
Ramsar sites of international importance for
birds. Indeed, one measure of the environ-
mental value of water bodies is to consider
the list of sites designated as internationally
important for waterfowl under the Ramsar
Convention on Wetlands. Of 957 sites
designated by December 1998, only 10%
included artificial wetland types, while 25%
included natural lake types.'*^ Many of the
desi gnated arti fi ci al wetl ands are dammed
sites of the almost 100 artificial wetlands
desi gnated as i nternati onal I y i mportant, 78
i ncl ude v\0ter storage areas* ^
A study by Wetl ands I nternati onal for
WCD shov\ed that the wi nteri ng v\0terfowl
86
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
assembled on natural and dammed lakes in
Switzerland are broadly similar, and the
same species occur most abundantly on both
types of lake. The study also showed that
the situation in South A frica is very differ-
ent, as it lacks natural permanent water
bodies and almost all permanent water
bodies are reservoirs. A t least 12 reservoirs
support major and important concentrations
of waterbirds. Large dams in South A frica
have provided generally beneficial condi-
tions for pelicans, darters and cormorants.
T hey provide suitable moulting sites for
waterfowl: for example, at least 70% of the
global population of the South A frican
Shelduck, Tadorna cana, moults at only 23
localities in South Africa, 21 of which are
large reservoirs. Dam reservoirs provide dry-
season or drought refuges for many water-
fowl species in the semi-arid parts of the
country.'^''
B ut producti ve v\etl ands are most I i kd y to
be created around rean/oi rs where these are
shal I ow or have shal I ow marg ns and I i mi ted
reffin/oi r dravvdovvns W here sedi ment
i nflowsfrom the catchment are heavy, smal I
del tai c v\etl ands may evol ve at the i nf I ow.
1 n general, deeper rearvoirsthat
have steep si des or h i gh seasonal
v\0ter- 1 e/d f I uctuati ons are un I i kd y
to support major wetland habitats
Dammed lakes support a more
restricted range of species and
SB/eral common and uncommon
speci es from natural I akes were not
recorded on dammed lakes by
Wetl ands I ntemati onal . T he dam-
mi ng of rivers has i ncreased the
number of open water sites aval I able
to wi nteri ng v\aterfowl i n Switzer-
land and provided a more suitable
habitat for these bi rdsthan the
general ly fast-fl owi ng stretches of
river in-between. However, these
si tes support onl y rd ati vd y smal I
numbers of bi rds of mostly common
and wi despread speci es and do not appear to
provi de as di verse a waterfowl habi tat as the
natural I akes in the area. Ele/enofthe
2 596 British reservoirs support substantial
and i mportant wi nteri ng waterfowl popula-
tions while 60 natural inland v\0tersand 52
estuaries support populations of internation-
al importance."
Figure 3.6 Fragmentation in 225 large river basins
All Basins
Southern Basins
N orthern Basins
40%
41%
39%
0% 10% 20% 30% 40% 50% 50% 70% 80% 90%
■ Strongly affected □ M oderately affected □ Unaffected
100%
Source: Revengaetal, 2000.
The Report of the World Commission on Dams
87
Chapter 3
Problems may be
magnified as more iarge
dams are added to a
river system, resulting in
an increased and
cumulative loss of
natural resources,
habitat quality
environmental
sustainability and
ecosystem integrity
Cumulative Impacts
M any of the major catchments in the world
now contain multiple dams. W ithin a basin,
the greater the number of dams, the greater
the fragmentation of river ecosystems. A n
estimated 60% of the world's large river
basins are highly or moderately fragmented
by dams (see Figure 3.6) . T he magnitude of
river fragmentation can be very
high. In Sweden, for example,
only three major rivers longer
than 150 km and six minor
rivers have not been affected
by dams.*
Althou^ seldom anal y^,
cumul ati ve i mpacts occur
when SB/eral dams are bui It on
a si ngle river. They affect both
the physical (first-order)
variableSi sich as flow regime
and water qual ity and the
productivity and species
composition of different rivers The prob-
lems may be magiified as more large dams
are added to a river system, resuiti ng i n an
increased and cumulative loss of natural
resourceSi habitat quality environmental
sustai nabi I i ty and eco^em i ntegri ty. T he
cumul ati ve i mpacts of i nterbasi n water
transfers can be of special concern, asthis
often i nvol ves the transfer of speci es i nto
new watersheds
Box 3.7 Cumulative impact of dams: tlie Aral Sea
The Aral Sea, fed by the Amu Darya and Syr Darya, was once the fourth largest
inland body of water in the world, ranking just behind Lake Supenor It
supported 24 species offish and a fishing population of 10 000 people. A senes
of dams was built on the rivers to feed an immense irngation system and grow
cotton on 2.5 to 3 million hectares of new farmland. The withdrawal of water has
reduced the Aral Sea to about 25% of its 1960 volume, quadrupled the salinity
of the lake and wiped out the fishery Pollutants that had formerlyfed Into the
lake became airborne as dust, causing significant local health problems. The
environmental damage caused has been estimated at $1.25 to $2.5 billion
annually
Source: Anderson, 1997, Section 1 pii. Section 6 pii.
T he W C D K nowl edge Base documents a
number of cumulative impacts that include
water quanti ty v\0ter qual i ty and speci es
i mpacts Flood regi mes are clearly affected as
i ncreasi ng the total storage vol ume by
adding additional dams reduces the flood
flov\E downstream.
I n Pakistan, theTarbda Cas Study reveals
that only 21% of the historical dry season
f I ow of the I ndus reaches the del ta; the rest
isdiverted for irrigation and water supply by
22 dams and barrages. Si nee the Kotri
barrage was commissioned in the early
1960s the average number of days with no
river fl ow downstream i n the dry season
1 ncreasd from isro to 85 (the average from
1962 to 1997) . Si mi I ar i mpacts have oc-
curred around the A ral Sea (see Box 3.7)
and i n A ustral i a where 80 years of ri ver
regulation, construction of additional
storages and diversion of v\ater from the
M urray Darl i ng River have reduced the
median flow reach i ng the sea to 21% of the
pre- regulated flow."
Water qual ity parameters recover only
slowly when v\ater is released from a dam.
Oxygen levels may recover withi n a ki lome-
tre or two, wh i I e temperature changes may
still exist 100 km downstream. Where the
di stance betv\een dams does not al I ow
recovery to natural le/ds the biology of
many hundreds of ki lometres of river may be
affected by a handful of dams Examples
from the WC D C as Studi es i ncl ude the
O range- Vaal river in South Africa, where
the i mpacts of 24 dams may have I ed to
2 300 km (63%) of the river havi ng a
modified temperature reg me. On the
Columbia River, Grand Coulee dam re-
ed ves water that isal ready hi^ in total
dissolved gassesasa result of upstream
C anadi an dams Before the I e/d s can
recover to natural val ues spi 1 1 at G rand
88
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams:
Environmental Performance
Coulee increases them again, passing the
problem further downstream.'*^ Construc-
tion of a seri es of dams may therefore have
i ncreasi ng i mparts on downstream ecosys-
tems and bi odi versi ty
A I so on the Columbia River, thecunxilative
i mpart of an additional dam on sal mon
migrationsissigiificant. It is estimated that
5- 14% of the adul t sal mon are ki 1 1 ed at each
of theei^t large dams they pass while
swi mmi ng up the river.*'
W hat i s not v\el I researched i s the change i n
the magnitude of the incremental response
of eco^em f unrt i on and bi odi versi ty as a
ri ver i s i ncreasi ngl y fragmented . T h us i t i s
not known if there is same threshold le/d at
whi ch the margi nal i mpac±s of the addi ti on
of one or more dams to a parti cul ar cascade
of dams will beg n to decline. It istherefore
a case by esse cal I whether the eco^em
i mparts of further modifyi ng a particular
river may at some poi nt be of les conse-
quence than, for example, putting the first
dam on a free-flowi ng river.
Anticipating and
Responding to Ecosystem
I mpacts
Examination of efforts to counter the
ecosystem impacts of large dams in the
WCD Knowledge Base indicates that they
have met with limited success owing to:
■ the lack of attention paid to anticipating
and avoiding impacts;
■ thepoorquality and uncertainty of
predictions;
■ the difficulty of coping with all impacts;
and
■ partial implementation and success of
mitigation measures.
Anticipating and
predicting ecosystem
impacts
In order for ecosystem impacts to
be addressed properly they have
to be understood and predicted.
The Cross-check Survey found
that for the 87 projects that
provided data on ecosystem
impacts, almost 60% of the
impacts identified were unantici-
pated prior to project construc-
tion, largely due to inadequate
studies. W hile the sample size is
small for some time periods, the
C ross-C heck also suggests that
over time the trend is increasing-
ly to anticipate impacts (see
Figures. 7). Thisconfirms the
expectation that the trend
towards the use of environmental
impact assessments (EIA ) would
result in improved identification
of potential impacts (see C hapter
6 for discussion of EIA s).
A nticipating an impact is,
however not synonymous with
accurately predicting the direc-
tion and magnitude of its effect
on ecosystems and biodiversity
N or does it guarantee understand-
ing of the further impact of such
changes on the livelihoods and
economic welfare of affected
people. W hile the generalised
impacts of reservoir creation on
terrestrial ecosystems and biodi-
versity are well-known, specifics.
Figure 3.7 Anticipated and
unanticipated ecosystem impacts
Source: WCD C ross-C heck Survey.
G lobal sub-sample
87 dams
Before 1950 (3 dams)
1950s (8 dams)
1960s (17 dams)
1970s (30 dams)
1980s (17 dams)
1990s (12 dams)
] Anticipated
lUnanticipated
The Report of the World Commission on Dams
89
Chapter 3
Downstream impacts on
aquatic ecosystems and
biodiversity are
intierently difficult to
predict where baseline
data are absent or
unreliable.
such as the net emissions of
greenhouse gases from a
particular dam site, cannot be
predicted with any certainty at
present. Further research into
the factors determining net
emissions may reduce this
uncertainty overtime.
Downstream impacts on
aquatic ecosystems and biodi-
versity and on floodplain
ecosystems represent the sum
of many complex interactions
and thus are inherently diffi-
cult to predict where baseline data are
absent or unreliable. H owever, the overall
direction of the impacts is generally nega-
tive. A s shown for the case of floodplain
effects, the impact of large dams on these
ecosystems will vary. W ith regard to fisher-
ies, while it appears that the effect on
species composition is generally negative at
all levels (upstream, reservoir and down-
stream), downstream losses in
productivity may be accompa-
nied by increases in reservoir
fishery production. Finally, the
nature of cumulative impacts as
additional dams are added to a
river system may be significant,
but a lack of research on the
topic makes predictive assess-
ment difficult.
In sum, past anticipation and
prediction of ecosystem impacts was limited,
in part due to a lack of reliable baseline
data, scientific uncertainty regarding the
nature of the interactions, inadequate
attention paid to these issues and a corre-
spondingly limited ability to model these
complex systems. W hile improvements in
measurement, scientific understanding and
modelling capability have occurred over
time, most ecosystem impacts remain site-
specific. Their exact nature cannot be
predicted in the absence of appropriate field
studies of individual river systems.
Avoidance, minimisation,
mitigation, compensation and
ecosystem restoration
TheWCD Knowledge Base reveals that
efforts to avoid or minimise impacts through
choice of alternative projects or alternative
designs were more successful than efforts to
manage the impacts once they were built
into the design of the dam. Avoidance and
minimisation of impacts, by their very
nature, reduce ecosystem impacts on the site
concerned. But where alternative sites or
designs have been chosen, the net conse-
quences for ecosystems have rarely been
recorded.
Project planners and proponents have
employed five principal measures to respond
to ecosystem impacts:
■ measures that avoid the anticipated
adverse effects of a large dam through
the selection of alternative projects;
■ measures to minimise impacts by altering
project design features once a dam is
decided upon;
■ mitigation measures that are incorporat-
ed into a new or existing dam design or
operating regime in order to reduce
ecosystem impacts to acceptable levels;
■ measures that compensate for unavoida-
ble residual effects by enhancing ecosys-
tem attributes in watersheds above dams
or at other sites; and
■ measures to restore aspects of riverine
ecosystems.
T he primary option for avoiding ecosystem
impacts from large dams has been not to
90
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
build the dams in tlie first place. Tiiis is
given a legal basis in A ustria, Finland,
France, Norway, Sweden, Switzerland, the
U nited States and Zimbabwe, where legal
'set-aside' provisions to protect particular
river segments or basins from regulation or
development have been establish ed.=°
Gcxxd site selection, sich asnot building
I arge dams on the mai n-stem of a ri ver
system, and better dam design also played
significant rolesin avoiding or minimising
impacts in a number of cases in theWCD
Knowledge Base.-' The International
E nergy A gency al so supported such pol i ci es
i n its recent pol icy paper H ydropower and
E nvironment." As reported earl ier, an
i ncreasi ng number of countries are usi ng
envi ronmental f I ow requi rements to mi ni -
mi se downstream i mparts (see Box 3.4)
someti mes i n the form of managed fl oods
(se Box 3.6).
Mitigation wasthe most widely prartised
response to eco^em i mparts for the I arge
damsintheWCD Knowledge Bas. As
noted earlier, mitigation has failed or
worked only sporadi cal ly i n the case of
wi I dl i fe rescue operati ons and f i sh passes
( Box 3.1 and Box 3.5) . I n the C ross-C heck
sub-sampi e of 87 proj ects for whi ch eco^
tem imparts were recorded, mitigation was
undertaken for I ess than one-quarter of the
anti ci pated eco^em i mparts ( 10% of al I
eco^em i mparts that occurred) . Of these
projerts 47 als3 recorded theeffertiveness
of mitigation measures implemented.
Respondents stated that about 20% worked
effertivdy 40% did not mitigate the impart,
and 40% were moderately efferti ve. T he
conci usi on can be drawn that onl y a smal I
percentage of eco^em i mparts that
occurred were artual ly mitigated effertivdy
whi I e the rd ati ve si gi i f i cance of these
i mparts remai ns unknown.
Whi le there are cases of good
mi ti gati on, the success i s never-
thd ess contingent upon stringent
conditions inci uding:
■ a good information base and
competent professional staff
available to formulate com-
plex choices for decision-
makers;
■ an adequate legal framework
and compliance mechanisms;
■ a co-operative process with the design
team and stakeholders;
■ monitoring of feedback and evaluation of
mitigation effectiveness; and
■ adequate financial and institutional
resources."
I f any one of these condi ti ons i s absent,
mitigation isunlikdy to succeed. Mitiga-
tion, though often possible in principle,
presents many uncertai ntiesinfiddsitua-
ti ons and is therefore at preant not a
credible option in all cassandall circunv
stances In addition, the weaknesses of the
El A process for many proj erts reduces the
possibility of positive outcomes" This
supports the use of alternative strategies
rather than simply one of mitigation.
C ompensati on for I ost resDurces n^y be 'i n-
ki nd' (for exampi e construrti on of a fi sh
hatchery for I ost fi sh spawni ng areas) or
'out-of ki nd' (for example v\atershed protec-
tion i n the upper catchment for loss of
ri veri ne or v\etl and habi tat) . C ompensati on
may also be paid 'in- basin' (for example
restoration of forest area withi n the river
basin for forest lost to inundation) or 'out-
of- basi n' (for exampi e assi stance i n expand-
i ng management capabi I i ty at si mi I ar
I ocati ons i n another river basi n) . T hese are
appi i ed to offst ecosystem and bi odi versi ty
\os5, aswdl as to replace lost produrtiveuse
Good site selection, such
as not buiiding iarge
dams on the main-stem
of a river system, and
better dam design also
played significant roles in
avoiding or minimising
impacts.
The Report of the World Commission on Dams
91
Chapter 3
of natural resources (as with fish
hatcheries). Concerns with the
effectiveness of compensation
include questions about the
possibility of 'replacing' ecosys-
tem functions and species (for
example, are fish raised in a
hatchery equivalent to native
fish stocks?) and the conse-
quences of such efforts, for
example whether fish hatcheries
actually damage native fish
stocks through disease and
competition.
Restoring ecosystem
through
decommissioning
Ecosystem restoration has been
undertaken in a range of coun-
tries where evolving national
legislation has required higher
standards of environmental performance
(see Box 3.8). In the U nited States and
France, dams have been decommissioned to
restore key environmental values, often
related to migratory fish (salmon), and often
as a condition of project relicensing.^^
Box 3.8 Ecosystem restoration through decommissioning in the
United States
A total of 467 dams have been removed to date in the United States, 28 of these
are large dams higher than 15 metres. Reasons for removal have included safety
concerns, the restoration of riverine fisheries, financial considerations, or
removal of unauthorised structures.
One example of a removal is the Grangeville dam on Clearwater Creek, Idaho.
Built in 1903, It housed a 10-M W power plant. The removal was motivated by
excessive sedimentation in the reservoir and blockage of migratory fish
following the collapse of the fish pass in 1949, The dam was removed in 1963,
and the nver washed out the accumulated sediment within six months, with no
recorded downstream effects. Removal restored access for salmon and
steelhead runs to 67 km of main stem river and over 160 km of tributar/ habitat
in the upper reaches of the Clearwater River, It also allowed members of the 1^ ez
Perce tnbe to regain a traditional fishery long denied them despite the
provisions of the 1855 treaty with the United States,
Source: Bowman et al, 1999, pxix, 27-31
Eco^em i rrpacts of decommi sa on i ng are
also complex and site-specific. One major
issuein dam decommi ssioningisvvhat to do
with possi biy pol I uted adi ment accumulat-
ed behi nd the dam. T he fate of this sedi-
ment when the dam is removed is frequently
a major obstacle to restoration.
C urrent I arge dam desi gns are often not
suff i ci enti y fl exi bl e to al I ow for changed
operati ng regi mes to meet envi ron mental
(or other) goals Global experience shows
that these long-lived structures may be
cal led on to operate differently i n the future
than i n the past as society's needs and val ues
evolve and as other dams are added i n the
catchment area.
I n 93me csees, the dam desi gi i s compi eted
before the envi ron mental fl ow needs are
determi ned, and cannot accommodate water
releases of the requi red quantity and qual ity
Five dams on theColorado River have now
been retroactively fitted with variable I e/d
offtakes to draw off surface v\ater, i ncrease
the temperature of the downstream river,
and sati sfy the needs of nati ve fi sh
Findings and Lessons
Large dams general ly have extensive i n>
pactson riverSk watersheds and aquatic
eco^ems. FromtheWCD Knowledge
Baseit isci ear that large dams haveledto:
■ the loss of forests and wildlife habitat,
the loss of species populations and the
degradation of upstream catchment areas
due to inundation of the reservoir area;
■ emissions of greenhouse gases from
reservoirs due to the rotting of vegeta-
tion and carbon inflows from the basin;
■ the loss of aquatic biodiversity, upstream
and downstream fisheries and the servic-
es of downstream floodplains, wetlands
92
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
and riverine estuarine and adjacent
marine ecosystems;
■ tlie creation of productive fringing
wetland ecosystems witli fisii and water-
fowl habitat opportunities in some
reservoirs; and
■ cumulative impacts on water quality,
natural flooding, and species composi-
tion where a number of dams are sited on
the same river.
T he ecosystem impacts are more negative
than positive and they have led, in many
cases, to irreversible loss of species and
ecosystems. In the Cross-C heck Survey 67%
of the ecosystem impacts recorded were
negative. The social consequences of
environmental impacts are examined in
Chapter 4.
Efforts to date to mitigate the ecosystem
impacts of large dams in theWCD Knowl-
edge base have met with limited success
owing to the lack of attention given to
anticipating and avoiding impacts, the poor
quality and uncertainty of predictions, the
difficulty of coping with all impacts and the
only partial implementation and success of
mitigation measures. M ore specifically:
■ it is not possible to mitigate many of the
impacts of reservoir creation on terrestri-
al ecosystems and biodiversity, and
efforts to 'rescue' wildlife have met with
little sustainable success;
■ theuseof fish passes to mitigate the
blockage of migratory fish has had little
success, as the technology has often not
been tailored to specific sites and species;
■ good mitigation results from a good
information base, early co-operation
between ecologists, the dam design team
and affected people, and regular monitor-
ing and feedback on the effectiveness of
mitigation measures;
■ environmental flow requirements (which
include managed flood releases) are
increasingly used to reduce the impacts
of changed streamflow regimes on
aquatic, floodplain and coastal ecosys-
tems downstream; and
■ avoidance or minimisation of ecosystem
impacts can be achieved through legisla-
tive or policy measures that set-aside
particular river segments or basins, or
through good site selection (such as
avoiding main stem dams).
Finally, a number of countries, particularly
the U nited States, are making efforts to
restore ecosystem function and native fish
populations by decommissioning large and
small dams.
The Report of the World Commission on Dams
93
Chapter 3
Endnotes
1 ICO LD, 1981 and 1988 cited in W CD
Thematic Review II. 1 Ecosystems; lEA ,
2000, cited in WCD Thematic Review II. 1
Ecosystems; see also other papers in WCD
cited Thematic Review 1 1.1 Ecosystems.
2 R even ga et al, 2000.
3 Respondentsto the Cross-Check Survey
found that 67% of the recorded ecosystem
impacts were negative.
4 WCD Thematic Review II. 1 Ecosystems,
section 3.
5 Where there is a loss of vegetation cover
there will be an increase in annual yield, but
the direction of change in dry season flows
will depend on the balance between eva-
potranspiration and infiltration effects
(Bruijnzeel, 1990). In most casesit is
expected that the evapotranspi rati on effect
will dominate leading to lower dry season
baseflow (Lamb and Gilmour, 2000).
6 TheWCD Thematic Review 11.2 Global
Changeand a W CD Workshop on the topic
provide reviews of the literature and the
perspectives of scientists working in this
field.
7 The authors stress that the large range
underscores the need for further quantifica-
tion in order to better understand the
contribution of reservoirs to global GHGs. St
Louis et al, in press.
8 Bosi, 2000, pl2.
9 WCD Thematic Review 11.2 Global Change,
Executive Summary pv.
10 WCD Thematic Review 11.2 Global Change;
lEA , op cit.
11 To make the comparison with the thermal
alternatives requires the measured reservoir
emissions to be converted to emissions per
kW h generated (see Box 3.2).
12 Values for methane are converted to a carbon
dioxide equivalent using a Global Warming
Potential of 21 and expressed as grams of
COj equivalent (I PCC, 1996, cited in WCD
Thematic Ra/iew 1 1. 2 Global Change).
13 WCD Thematic Review 1 1.2 Global Change.
14 Ibid.
15 Fi el d measurements from Rosa et al , 1999.
16 Fearnside, 2000, develops a mathematical
model.
17 Emissions per krri are converted to emis-
sionsn"Wh using the mean annual genera-
tion 1995-1999.
18 Dietrich, 1999 env082, WCD Submission.
19 H ol den and Stal nd<er, 1975, p217, 229.
20 Walker, 1979, pl56-57.
21 Thomas, 1998, p2.
22 WCD Thematic Ra/iew 1 1. lEcosystems>
section 3.6.2.2.
23 Col I ier et al , 1996, p56-58.
24 A bdel M egeed and A ly M akky, 1993, p298;
Stanley and Warne, 1993, p628, 630.
25 Bourke, 1988, pll7.
26 Balland, 1991.
27 Hynes, 1970, p422-423.
28 J ackson and M armul I a, 2000, C ontri buti ng
Paper forWCDThematic Reviewll.l
Ecosystems pl2-13; Larinier, 2000, Contrib-
uting Paper for Thematic Reviewll.l
Ecosystems pii.
29 H ubbs and Pi gg, 1976, pll5.
30 Walker, op cit, pl52.
31 FurnesEi 1978.
32 For example: HadqiaN guru in Hollisetal,
1993.
33 WCD Thematic Review 1 .1 Social I mpacts,
Annex I.
34 KudI avi cz; 1999 envl29, p3 and 2000
env063, pi, WCD Submissions
35 J ackson and M armul la, op cit, p8.
36 Welcomme, 1976, p361.
37 Benech, 1992, pl61; J ubb, 1972; Lowe-
McConnell, 1985, pl20.
38 Lower Vol ta i n A dams 1992, pl45- 146;
Kassas 1973; Gammelsrod, 1996, pl20.
39 A I eem, 1972, p205; Dri nkwater and Frank,
1994, pl41.
40 Gammelsrod, op cit, pl23.
41 J ackson and M armul I a, op ci t, Executi ve
Summary pi V.
42 Frazer, 1999, pl7-18.
43 Ramsar Convention Database, 1999.
94
Dams and Development: A New Framework for Decision-Making
Ecosystems and Large Dams: Environmental Performance
44 Davidson and Delany, 2000, Contributing
paper for WCD Thematic Review II. 1
Ecosystems, p4, 13.
45 Ramsar Convention Database, op cit; Bridle
and Sims, 1999, p3.
46 Lovgren, 1999 envl36, WCD Submission,
p2, 8.
47 Crabb, 1997, p42.
48 T h i s probi em i s I essen ed wh en th e water al I
passes through the turbines, and there is no
spill.
49 Eley and Watkins, 1991, p21.
50 WCD Thematic Review II. 1 Ecosystems,
section 4.2.1.
51 WCD Thematic Review II. 1 Ecosystems,
section 6.2.
52 lEA, op cit, p27-29.
53 WCD Thematic Review II. 1 Ecosystems,
Executive Summary p xii.
54 WCD Thematic Review V.2 Environmental
and Social A ssessment, section 2.5.
55 Bowman etal, 1999, Executive Summary p xii;
Epple, 2000 optl36, WCD Submission, p3.
56 U S Bureau of Reclamation, 2000a.
The Report of the World Commission on Dams
95
Chapter 4
People and Large Dams-
Social Performance
The social impacts of large
dams - their impact on
people's livelihoods health, social
systems and cultures- are an integral
part of their performance record
D ams are one of a series of public
infrastructure projects aimed at the
economic d&/elopment of a region,
nation, or river basin. The direct
benefits they provide to people are
typically reduced to mon^ary figures
for economic analysis and are not
often recorded in human terms In
addition, simply accounting for these
direct benefits often fails to capture the
full social benefits associated with
Chapter 4
providing water, electricity, and
flood control, and including any
indirect economic benefits or
multiplier effects.
At the same time, however,
dams have negatively affected
many people and societies. This
is clear throughout the WC D
Knowledge Base, most poignant-
ly through many of the presenta-
tions made by dam-affected
peoples in the W CD Regional
C onsultations and the non-
governmental organisation
(NGO) hearings in Europe and
South Africa. Globally the
overall magnitude, extent and
complexity of these adverse social impacts
for the displaced and for those dependent on
the riverine ecosystem - both upstream and
downstream from a dam - are of such
significance as to merit detailed considera-
tion in any assessment of the rationale for
dam construction. Further, it is apparent
that these impacts are - even today - often
not acknowledged or considered in the
planning process and may remain unrecog-
nised during project operations. W here
measures are put in place to mitigate im-
pacts on affected people they typically fail to
address adequately the problems caused by
the decision to build a large dam.
J ust as with the economic impacts of large
dams, the social and environmental impacts
of dams can be classified as gains or losses
accruing to different social groups - now
and in the future. A nalysis of the W C D
Knowledge Base, and in particular the
WCD Case Studies, indicates that the poor,
vulnerable groups and future generations are
likely to bear a disproportionate share of the
social and environmental costs of large dam
projects without gaining a commensurate
share of the economic benefits. W here the
broader costs and benefits - economic,
environmental and social - fall unequally
within society, decision-making on project
appraisal and selection based simply on
summing up the positives and negatives is
inadequate on equity grounds. A t the same
time it is clear from the emerging experience
with good practice on benefit sharing mecha-
nisms and reparations detailed in the Knowl-
edge B ase th at a co nti n uati o n of th e I egacy of
inequity associated with many large dams is
not only unacceptable, but unnecessary.
ThischapterusestheWCD Knowledge
Base to present a number of issues of strate-
gic importance surrounding the social
impacts of large dam projects, particularly
those that underpin the growing worldwide
opposition to dams by affected communities.
To acknowledge the costs in this regard is
not to deny the benefits. H owever, in order
to provide a foundation for the way forward,
it is essential to understand the extent,
diversity and range of social impacts -
particularly the adverse impacts. This
understanding must extend to all manifesta-
tions and implications for various popula-
tion groups; the extent to which such
impacts were addressed; and the outcome of
mitigation, resettlement and development
measures.
T he chapter begins with a brief overview of
social impactsduring the planning and
project cycle, with an emphasis on the social
costs and benefits, as well as the indirect
economic benefits, that accompany dam
projects and the services they provide. The
impacts on people displaced from their
homes and livelihoods, indigenous peoples,
downstream communities, gender, human
health and cultural heritage are then
explored at length. A nalysis of the costs and
benefits of large dam projects and their
98
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
distribution across different groups in society
leads to conclusions on equity and the
adequacy of the 'balance sheet' approach of
evaluating large dams. Initiatives addressing
equity concerns are then described, followed
by conclusions for the chapter.
Socio-economic Impacts
tiirougii tlie Planning and
Project Cycle
G iven the different types, sizes and locations
of large dams in theWCD Knowledge Base,
generalisations on the socio-economic
impacts of dams are limited and, in many
cases the nature or significance of the
impacts are contested. This section briefly
illustrates and characterises the social costs
and benefits, and the indirect economic
costs that are associated with the planning
and project cycle, with particular attention
to those that accompany the provision of
dam-related services
Planning and design
A t the planning and design stage an impor-
tant social impact is the delay between the
decision to build a dam and the onset of
construction. Dams are often discussed years
before project development is seriously
considered and once a site is identified a
form of 'planning blight' can take place,
making governments, businesses, farmers
and others reluctant to undertake further
productive investments in areas that subse-
quently might be flooded. C ommunities can
live for decades starved of development and
welfare investments. A related problem is
the fear felt by many people living in a
possible reservoir area. Such psychological
stress cannot be effectively quantified in
economic terms, but it is a real issue. A t this
stage, project beneficiaries include those
sustained by the business generated by the
planning process, including contractors,
consultants and workers employed on the
project. In the case of developing countries,
particularly smaller countries with a limited
'dam industry', foreign consulting firms have
often undertaken the preparatory studies.^
Construction
D uri ng the constructi on
peri cxI, dam proj ects requi re
a large nurrter of unskilled
v\orkers and smal I er but
sigiificant amounts of ski I led
labour. Newjobsare therefore
created both for ski I led and
unski 1 1 ed v\orkers duri ng the
construction pmee. The
WC D C as Studi es report that
Kariba and G rand Coulee
errployed betv^en 10 000 and
15 000 v\orker5 each. D uri ng
the peak construction period, a labour force
of about 15 000 peopi e was empi oyed at
Tarbda, helping to build local capacity for
subsquent national development projects
Whileskilled labour is typical I ydravvn from
the national labour market, international
contractors are often i nvol ved at thi s stage
as wel I . T he constructi on of dams and thei r
associated i nfrastructure bri ng significant
benefi ts to the empI oyees and sharehol ders
of companies engaged in construction and
the supply of equi pment and materials
The beneficial effect on local communities
is often transient due to the short- 1 ived,
pulse i mpact of the construction economy
on dam constructi on sites Careful planning
may hovvB/er, enhance the 'boonl phas
and lead to long- lasting benefits Roads
pov\er lines axial sen/ices and other
i nfrastructure i nstal led through the bui Idi ng
of a dam provi de access to pre/i ousi y
At the planning and design
stage, an important social
impact is the delay
between the decision to
build a dam and the onset
of construction. This can
result in communities living
for decades starved of
development and welfare
investments.
The Report of the World Commission on Dams
99
Chapter 4
inaccessible areas, allowing
settlement and connecting local
economies to national markets.
This has both positive and
negative social impacts^ Exposed
to the national economy, indige-
nous and vulnerable groups find
their lands and livelihoods
threatened by forces beyond
their experience or control.
Similarly existing settlements at
construction sites have found
themselves subject to increased
health problems (including
malaria, sexually transmitted
diseases, and H IV-A IDS) and a
loss of social cohesion with the
large influx of outsiders.
Irrigation
A s with livelihood enhancement, the
broader impacts of irrigation projects on
rural and regional development were often
not quantified. Dams, along with other
economic investments, generate indirect
economic benefits as expenditure on the
project and income derived from it lead to
added expenditure and income in the local
or regional economy T he W C D C ase
Studies give examples of these 'multiplier'
benefits resulting from irrigation projects. In
the case of G rand C oulee, agribusiness and
local communities prospered due to irrigated
production yielding multiplier effects of
1.5-1.7. Similarly theAslantasdam spun off
projects that led to a tripling in agricultural
processing and machinery manufacturing for
the area. Beyond these economic impacts,
irrigation schemes also produce a series of
indirect social benefits derived from the -
typically unanticipated - multiple use of
irrigation water. Estimates of project bene-
fits usually rely simply on the expected crop
output and ignore the use of water for
horticulture, livestock and fish production,
as well as domestic water supply^
H ow much of a sti mul us i rrigation projects
have provided to wider regonal develop-
ment isa complex issue that needs more
explicit recognition during project formula-
tion to ensure that the enabi i ng framework
isin pi ace to encourage growth. In this
regard, regi onal nxil ti pi i er effects are useful
i ndi cators of the di stri buti on of proj ect
benefits to a project region. HowB/er, th^
represent a gal n i n the economi c v\el fare of
the nation only when excess capacity
(unemployed resources) exists Where it
does not exist they si mply repreant a
transfer (or re-distribution) of resources
from one region of the economy to another.
T he role of dams i n i mprovi ng nutrition and
food security is contested. I ncreass i n food
production from i rri gated ag"i culture may
I ead to both i ncome and pri ce effects as
farm! ng househol ds i n i rri gated areas i n-
crease thei r purchasi ng power and the pri ce
of stapl e foodstuffs fal I s for urban ( and other
non-farming) households For these hou^
holds irrigated ag'i culture and, implicitly
I arge i rri gati on dams are I i kd y to have
contri buted to g'eater food security and
i mproved nutrition at the hou^old level .
At the national level, nutritional le/ds
i ncreasd over the 25 years from 1970 by
14% i n I ndi a and 30% i n C hi na.^ T hese
tv\o countri es are tv\o of the I argest bui I ders
of irrigation dams Hov\ever, the actual
extent of the contri buti on of I arge dams to
these i mprovements is difficult to deter-
mi ne. T he I ndi a C ase Study cal cul ates that
the share of the total i ncrease i n food
production from 1950-1993 attributable to
additional land brought under irrigation is
100
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
10% .The study does not assess the extent of
productivity gains derived from access to
irrigation water. India's Central Water
Commission puts the share at 30%. In the
past 50 years India achieved a marginal
surplus in terms of per capita food availabili-
ty I n percentage terms I ndia also saw a
decrease in the share of the rural population
below the poverty line. H owever during this
period the absolute number of people below
the poverty line - that is without capacity to
buy food - increased from 180 million to
300 million. '^Again, the precise impact of
dams on these numbers is not known.
National statistics mask significant local
variation. Of concern isthat people in food-
defi ci t areas are di sadvantaged i n terms of
access to basic food grains and pay higher
pri ces than those i n food-surpi us areas
C ontri buti ng to these concerns i s the
tendency of I arge i rri gati on schemes to I ead
to the production of more cash crops than
envisaged at planning and less food crops (as
indicated in Chapter 2). Producing higher
val ue cash crops i s a rati onal deci si on for
commercial farmers who maychoosto
purchase foodstuffs O nee poorer farmers
achieve household food self-sufficiency they
wi 1 1 probabi y choos to market surpi us
produce and, therefore, shift to higher val ue
crops The concern i s that those peopi e who
do not parti ci pate i n the i rri gati on proj ect
or are otherwi s marg nal i sed due to dam
constructi on may face hi ^er food pri ces
and decreased food security as a result.
Hyd ropower
N ew energy services provided by dams have
benefited urban populations and others
connected to power distribution systems.
Typically in countries with low levels of
energy services, even small energy inputs
bring significant welfare improvements. The
experience in the informal settlements
(favelas) in Sao Paulo, Brazil illustrates the
social and environmental benefits electricity
services can bring to people (see Box 4.1).
A s in Sao Paulo, policy measures are in-
creasingly used to bring electricity to poorer
sections of the population. T he slum areas in
M umbai in India, M anila in the Philippines,
and other cities and towns in the developing
world are further examples of such efforts
Employment
In terms of generating employment, the
principal impact of large dam projects -
aside from construction jobs - arises from
the new productive enterprises allowed by
the provision of water or electricity The
C ase Studies provide a number of examples
of anticipated and unanticipated employ-
ment generation (also see Table 4.1, pl21).
Box 4.1 Bringing electricity to tlie favelas in Sao Paulo, Brazil
Between 1973 and 1993, Sao Paulo's favelas swelled from about 700 000
nhabitants to over 2 million. Initially, the squatters' shacks had only sporadic
and illegal electrical connections, partly because the electric utility had no
procedure for electnfication of such structures and partly because municipa
authonties thought that improvement of the favelas would condone illega
occupation of the land.
By 1979, the city and the electnc utility, Electropaulo, came to an agreement and
connected some favelas to the gnd using simplified Installation kits and no
meters. Consumers were billed a flat rate, which was subsidised, fora minimal
monthly consumption of 50 kWh - enough to run a couple of lamps and a radio
or other domestic appliance. The cost of metering was considered too high for
such low usage levels.
By 1983, some 100 000 shacks were connected, and the quality of life improved.
Better lighting simplified the tasks of cleaning and maintaining the shack and
caring forchlldren and sick people. Without smoke from candles and kerosene
lamps health improved. People started to use TV sets, irons and refrigerators.
Where water services were provided, electric showers also became more
common, Forthe squatters, an import:ant benefit was receiving bills with their
name and address, which gave them a certain social recognition as well as
access to credit,
A decade later, electricity consumption per shack had increased to 175 kWh,
M any of the dwellings had been greatly improved, and services were more
reliable. Some demographers attnbute the strong decline In Brazil's population
growth rate - from 3,8% per year in 1970 to 1,4% today - to the adoption of new
cultural values that spread partly through television, which electricity made
available
Source: Boa N ova and Goldemberg, 1999,
The Report of the World Commission on Dams
101
Chapter 4
As with any indirect
economic impact, it is
important to consider
not just the gross
number of jobs created
by a project but a/so
whether alternative
uses of project
resources wouid
generate similar gains.
I n the case of the A slantas dam, an increase
in employment in farming was projected. It
did not materialise due to a shift to less
labour-intensive crops mechanisation and a
general migration to urban areas In the
Orange River Development Project, al-
though farm jobs decreased throughout
South A frica from 1960 through the 1980s
(the latest period for which data are availa-
ble), they dropped less in the command area
of the project. W hen compared to national
trends the loss of at least 4 000 regular jobs
was avoided and effectively some
16 000 seasonal jobs were
created in downstream areas by
the dams and associated irriga-
tion development. = Theemploy-
ment i mpacts accrued I argd y to
B I ack A f ri cans and the 'C ol -
oured' racial groups who
represented 97% of paid farm
vvorkers
EmpI oyment gai ns are al 93
engendered by hydropov\er
production and other sen/ices
provi ded by reservoi rs I n the case of Tucu-
rui and G rand Coulee, a sizable percentage
of the power produced goes to i ndustri es i n
the respective reg ons Si mi I arly the crea-
tion of commercial and sport-fishing i ndus-
tri esj as v\el I as reservoir- based recreation
and tourism has led to job creation at
Grand Coulee, Tucurui and Kariba. I niand
navigation can also provide substantial
employment. The Panama Canal, based on
two large dams^ di recti y employs 8 000
people on Canal operations and creates jobs
i n the I ocal sh i ppi ng servi ces i ndustry and
duty-free zone.' A s wi th any i ndi rect
economic impact, it is important to consider
not j ust the gros n umber of j obs created by
a project but alsD whether alternative uss of
proj ect resources woul d generate si mi I ar
gains
Displacement of People
and Livelihoods
M any development interventions to trans-
form natural resources particularly large-
scale infrastructure projects - involve some
form of displacement of people from their
livelihoods and homes Large dams are
perhaps unique amongst such projects in
that they can have widespread and far-
ranging ecosystem impacts due simply to the
blocking of a river The result is a series of
terrestrial, aquatic and riparian impacts that
not only affect ecosystems and biodiversity
but also have serious consequences for
people who live both near and far from the
dam site. A large, multi-functional resource
base like a river and its surroundings is
characterised by a complex web of diverse,
interconnected, implicit and explicit
functional roles dependencies and interac-
tions Consequently the social and cultural
implications of putting a dam into such a
landscape are spatially significant, locally
disruptive, lasting and often irreversible.
Large dams have significantly altered many
of the world's river basins with disruptive,
lasting and usually involuntary impactson
the livelihoods and socio-cultural founda-
tions of tens of millions of people living in
these regions T he impacts of dam-building
on people and livelihoods - both above and
below dams - have been particularly devas-
tating in A sia, Africa and Latin A merica,
where existing river systems supported local
economies and the cultural way of life of a
large population containing diverse commu-
nities
Displacement is defined here as referring to
both 'physical displacement' and 'livelihood'
displacement (or deprivation). In the
narrow sense displacement results in the
physical displacement of people living in the
102
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
reservoir or other project area. This occurs
not only from the inundation of reservoirs
but from the installation of project facilities
and associated infrastructure. T he W C D
Knowledge Base records that all too often
this physical displacement is involuntary
and involves coercion and force - in a few
cases even killing.
H owever, the inundation of land and
alteration of riverine ecosystems - whether
upstream or downstream - also affects the
resources available for land- and riverine-
based productive activities. In the case of
communities dependent on land and the
natural resources base, this often results in
the loss of access to traditional means of
livelihood, including agricultural produc-
tion, fishing, livestock grazing, fuelwood
gathering and collection of forest products,
to name a few. N ot only does this disrupt
local economies, it effectively displaces
people - in a wider sense - from access to a
series of natural resource and environmental
inputs into their livelihoods. Thisform of
livelihood displacement deprives people of
their means of production and dislocates
them from their existing socio-cultural
milieu. (See Box 4.2) The term 'affected'
thus applies to people facing either type of
displacement.
The timing of these social impacts varies,
depending on the proximate cause. In the
case of loss of home and livelihood due to
the filling of a reservoir, the social impacts
are quite immediate. T he implications for
downstream livelihoods, however, come to
the fore only after completion of the dam.
A t this point they may set in quickly, as
with changes in flow and their impact on
recession agriculture or slowly as with
physical and chemical changes that are
translated into degradation of ecosystem
function and loss of biodiversity
Scale of physical displacement
TheWCD Knowledge Base confirms that
there are many dams that have caused
physical displacement - and indeed that
large dam construction has physically
displaced tens of millions of people world-
wide in the last half century The scale and
extent of impacts will vary depending on
location, size and other dam characteristics
such as inundated area, and population
density in the river basin. In the eight W CD
C ase Studies, the only one without any
physical displacement was the chain of dams
in the G lomma and Laagen Basin. In the
Cross-C heck Survey physical displacement
isreported in 68 of thel23 dams(56%). Of
the dams in this sample, 52 out of 68 dams
are in Latin A merica, A si a, and sub-Saharan
Africa. Large dams on the main-stem of a
Box 4.2 Economic, socio-cultural, and health impacts of livelihood
displacement
Resettlement programmes have predominantly focused on the process of
physical relocation ratherthan the economic and social development of the
displaced and other negatively affected people. The result has been the
mpoverishment of a majority of resettlers from most dam projects throughout
the world.
According to Cernea's Impoverishment Risks and Reconstruction model,
displacement epitomises social exclusion of certain groups of people. It
culminates in physical exclusion from a geographic terntory and economic and
social exclusion from a set of functioning social networks. Thus, affected people
face a broad range of impovenshment risks that include landlessness, jobless-
ness, homelessness, marginalisatlon, food insecurity increased morbidity loss of
common resources, and community disarticulation that result in a loss of socio-
cultural resilience.
The key economic risks to affected people are from the loss of livelihood and
ncome sources such as arable land, common property resources (forests,
grazing land, ground and surface water, fisheries, and so on), and changed
access and control of productive resources. The loss of economic power with
the breakdown of complex livelihood systems results in a temporary or
permanent, often irreversible decline in living standards, leading to
marginalisatlon. Higher risks and uncertainties are Introduced when diversified
ivelihood sources are lost. Loss of livelihood and disruption of agncultural
activity can adversely affect household food security leading to under-
nourishment. Higher incidence of diseases associated with detenorating water
quality can result in increased morbidity and mortality High mortality rates
immediately following Involuntary resettlement from the reservoir areas of the
Kariba and Aswan High dams are cases in point. Forced displacement tears
apart the existing social fabnc, leading to socio-cultural disarticulation.
Source: Cornea, 1999; Cornea, 2000; Cornea and
Guggenheim, 1993; McDowell, undated: Scudder, 1997a, b.
The Report of the World Commission on Dams
103
river and in densely populated
regionsof the world will
inevitably displace people. In
the C ross-C heck sample, 26%
of dams with a surface area
less than 1 km^ report physi-
cal displacement compared
with 82% of dams over 100
kni i n area. Yet the C ross-
C heck figure may understate
the occurrence of physi cal
displacement given the larger tendency
tov\ardssysterrBtic under-enumeration
discussed below.
danvdisplaced people in China isnxich
higher than the official figure, with 10
million displaced in the Yangtze Valley
al one.' Large dams i n I ndi a di spl aced an
estimated 16-38 million people.' Thu^ in
I ndi a and C hi na together, I arge dams coul d
have displaced between 26-58 million
people between 1950 and 1990. The le/d of
displacement has increased substantially
after 1990 with the construction of projects
such as Three Gorges in China. Among the
proj ects i nvol vi ng di spl acement funded by
the World Bank, I arge dams account for
63% of displacement.'"
The overall global le/d of physical displace-
ment could rangefrom40to80million.
According to official statisticsj dams have
displaced 10.2 million people in China
between 1950 and 1990 (34% of al I de/d-
opment- rd ated di spl acement i ncl udi ng that
due to urban construction) .' I ndependent
SDurces estimate that the actual number of
Box 4.3 M issing numbers of affected people: Sardar Sarovar project,
India, and Pak Mun dam, Thailand
Forthe Sardar Sarovar project, the 1979 Narmada Water Disputes Tribunal gave
the number of displaced as 6 147 families, or about 39 700 people, Tfie World
Bank's 1987 mission placed the total at 12 000 families (60 000 people). In 1991,
the project authorities provided an estimate of 27 000 families. According to
three state governments, the current estimate of displaced families stands at
41 000 (205 000 people). This number will probably increase, since 13 years after
full-scale dam construction began, resettlement surveys have still not been
completed. The current estimate does not include at least 157 000 people
displaced by canals. N or does it include those moved to make space forthe
creation of a wildlife sanctuary and forthe resettlement of people displaced by
the dam, or the 900 families displaced in the early 1960s to make room for
construction site infrastructure. The nature and extent of the dam's impact on
downstream livelihoods were not assessed. Serious efforts to survey the affected
villages and people began several years after the start of dam construction work
in response to intense struggles by the affected since 1985,
In 1991, when construction started on the Pak M un dam, 241 families were
counted as displaced By the time construction was completed it was clear that
another 1 459 households had to be relocated. The true extent of the social
impact only became evident when the Impact of the dam on fisheries livelihoods
was admitted in response to prolonged agitation by the affected people By
March 2000, the Thai government had paid interim compensation - pending a
final solution to the permanent loss of fisheries livelihoods - to 6 204 house-
holds for livelihood loss during construction
Source: Sardar Sarovar in Brody 1999, Contributing PaperforWCD Thematic
Review 1.1 Social Impacts, Section 5.2: Supreme Court of India, 1999: Morse
and Berger, 1992, p51, 89: WCD Pak Mun Case Study
T hese figures are at best only esti mates and
certainly do not includethemillionsdis-
pl aced due to other aspects of the proj ects
such as canal s> powerhou£s> project infra-
structure, and associated compensatory
measures^ such as biological reserves and so
on. They also refer to physical displacement
only and thus do not indude communities
upstream and downstream of dams that have
suffered I i vd i hood di spl acement.
Under-counting of the
displaced
A t the planning stage, the numbers of both
directly and indirectly affected people have
frequently been under-estimated (see Box
4.3), and there has been inadequate under-
standing of the nature and extent of the
negative impacts. In all the WCD Case
Studies, the initial assessments of the
projects failed to account for all the affected
people. T he levd of under-enumeration
ranges from 2 000 to 40 000 people. Exam-
ples from large dam projects in A frica
include the tri-national Ruzizi hydrodectric
project involving Zaire, Rwanda, and
Burundi, the Funtua dam in N igeria, and the
Kiambere reservoir on theTana River in
Kenya, with discrepancies ranging from 1 000
104
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
to 15 000 people." Similarobsrvations
errerigefromotherregons^' Amongprojects
funded by the World Bank, the actual number
of peopi e to be resttl ed v\as 47% hi ^er than
the est! mate made at the ti me of apprai sal ^
T he WC D C ross-C heck Survey ra/eal s a
si mi I ar trend towards under-esti mati on
i nsofar as 35% more peopI e v\ere resetti ed
than initially planned. Thisfigure must
represent a lov\er bound on the error i n the
C ross-C heck dam^ gventhe poor reliability
of the esti mates. Data provi ded by N G O s as
part of the external re/i ew of the C ross-
C heck Survey confi rm this view, as many of
the actual f i gures for the physi cal I y di s-
pl aced v\ere di sputed.
Affected groups that are not
counted or compensated
Surveys of the categories of people to be
affected by dams have generally been
inadequate. The scope of definition of the
affected has been limited, and the totality of
affected groups has not always been deter-
mined. T he principal categories excluded
from assessments include the landless,
downstream communities and indigenous
people. T he W C D C ase Studies show that
communities situated downstream from the
dam, those without land or legal title,
indigenous people and those affected by
project infrastructure (and not just the
reservoir) were not considered as affected
people at the time of design.
A mong those assessed, compensation has
usually gone only to those in possession of
legal titles, leaving out a large number of
people - often the poorest - who depend on
common resources such as forests and
grazing grounds for subsistence. In the W C D
C ase Studies on G rand C oulee, Tarbela,
A slantas and Tucurui, only those affected
people with legal title were compensated for
the loss of their lands and liveli-
hoods. W ith such criteria for
eligibility indigenous peoples and
ethnic minorities suffer dispropor-
tionately as they may lack citizen-
ship, tenancy or land tenure
papers. 0 ne-fifth of those physical-
ly displaced by the Kao Laem dam
in Thailand were from the Karen
ethnic group. Because they lacked
legal residence permits, they were
considered ineligible for resettlement.
Often, people physically displaced bycanals^
powerhouse^ and associated compensation
measures such as nature reserves are not
enumerated and considered for resettlement.
Examples of this type emerge from all parts
of the world, including Sulav\esi, Indonesia;
theMahav\eli Development Programme, Sri
Lanka; and the Sardar Sarovar project,
India." Further, compensation is often not
pal d to those affected by such addi ti onal
components of a proj ect.' '
Whilenotall largedams have involved
physical displacement it would be much
rarer to fi nd a river whose natural functi on
is not used or appreciated by people i n some
fashion. And in many cases i n densly
popul ated tropi cs I arge dams wi 1 1 1 ead to
both physical and livelihood displacement.
For exampi e, the U rra 1 dam on the U pper
Si nu River in Colombia displaced 12 000
people but alsD affected severely more than
60 000 fishermen i n the lower Si nu, where
the fish population diminished drastically as
a result of the dam."
Physically displaced
populations enumerated but
not resettled
Among physically displaced people officially
recognised as 'project affected,' not al I are
gven assistance to resttle in new locations
Often, people physically
displaced by canals,
powerhouses, and
associated compensation
measures such as nature
reserves are not
enumerated and
considered for
resettlement.
The Report of the World Commission on Dams
105
Chapter 4
Little or no meaningful
participation of affected
people in the planning
and implementation of
dam projects - including
resettlement and
rehabilitation - has taken
place.
In India, those actually resettled range from
less than 10% of the physically displaced in
the case of the Bargi dam to around 90% for
the Dhom dam.^^ TheYacyreta project in
A rgenti na and Paraguay isaclasacillustra-
tion of delayed and i ncomplete resttle-
ment. 1 1 took the proj ect de/d opers 20 years
to resetti e j ust over 30% of the di spl aced
peopi e, I eavi ng the rerrBi nder to be resttl ed
i n the I ess than twD yeeirs before the renvoi r
TOuld be filled. If the experience of other
proj ects involving large di^lace-
n^t in a regon istaken into
consideration, a large proportion
of the Yacyreta di spl aced are
unl i kd y to be restti ed."
TheWCD Case Study on
Tarbd a reports that of the
96 000 physi cal I y di spl aced
people enumerated for the
Tarbd a dam i n Paki stan, two-
th i rds qual i f i ed for repi acement agri cul tural
land in Punjab and Sindh provinces Of
these, some 2 000 fami I ies or approxi matdy
20 000 people did not recave land when the
amount of land provided by Si ndh fd I short
of that promi sed. I n the case of A sl antas
only 75 of an esti mated 1 000 displaced
fami I ies asked for resettlement, with the
rerrainder choosing cash compensation. Of
these, 49 were consi dered d i gi bl e for
resettlement and subsequently recdved new
housi ng. I n the case of Tucurui , of the
i ndi genous g'oups physi cal I y di spl aced on I y
the Parakana peopI e v\ere resttl ed; the other
i ndi genous gioup thatlostlandtothe dam was
not considered for re^lement benefits
I n the G rand C oul ee proj ect, the C ol vi 1 1 e
and Spokane reservation \df\ds, in addition
to three towns v\ere inundated. By the
summer of 1940, the risi ng v\ater covered
the fi rst tracts of land and the government
was d earing allotments and burning houss
But none of the owners had been pai d con>
pensati on . T he C ol vi 1 1 e agent reported that
the I ndi ans v\ere grcm ng resntf ul , they
needed money to bui Id new homes and
i mprove thd r rerrBi ni ng property and they
knew that white owners acros the river had
already been paid.'" TheColvilleand
Spokane tri bes only recdved cash compensa-
tion for reffifvation land in 1941. Tw3 tribal
towns Kd I er and I nchd i um v\ere rebui 1 1 and
still e<i St today but other srrBl I ersttlements
were lost with the i nundation."
Experience of affected people
with resettlement, mitigation,
and compensation
Little or no meaningful participation of
affected people in the planning and imple-
mentation of dam projects - including
resettlement and rehabilitation - has taken
place. Involuntary traumatic and ddayed
relocation, aswdl as the denial of develop-
ment opportunities for years and often
decades, has characterised the resettlement
process." Formillionsof people on all
continentSk displacement has essnti ally
occurred through official coercion." The
starkest exampi e from theWCDCase
Studi es comes from one of the earl i er dam
proj ects Karl ba, where the resi stance of the
Tonga people ended with the fatal shooting
of d ght peopI e.' ' T he di spl acement of
people at the Sri Sailam project in India in
1981 v\asalso achieved throu^ force."
Evi cti on of peopI e at the C hi xoy dam si te i n
G uatemal a I ed to the ki 1 1 i ng of about 376
MayaAchi people from the submergence
area." In implementing the Mi gud A I erren
dam i n M exi co, empi oyees from the Papal -
oapan River Commissi on set fire to homes
of 21 000 M azatec I ndi ans who v\ere refus-
i ng to move.' ' I n other cases - such as the
submergence of 162 vi 1 1 ages when the Bargi
dam i n I ndia v\asfi I led without warn i ng -
106
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
authorities have resorted to eviction
through the filling of reservoirs prior to the
departure of the displaced.^^
Cash compensation isa principal vehicle for
delivering resettlement benefitSi but it has
often been delayed and, even when paid on
time, has usually failed to replace lost
livelihoods Compensation is understood to
refer to specific measures i ntended to make
good the I osses suffered by peopi e affected
by the dam. 1 1 usual I y takes the form of a
one-off payment either i n cash or ki nd for
land, housing and other assets" TheWCD
C ase Studi es show that downstream con>
muniti es affected by loss of floodplain
vegetation and fisheries in Tucurui dam in
Brazi I and Tarbda dam i n Pakistan were not
compensated. T he G aval o da M ontanha
i ndi genous peopI e, whose I ands v\ere affect-
ed by the transmi ssi on I i nes i n the Tucurui
proj ect, were i n i ti al I y not consi dered
el i g bl e for compensati on but v\ere I ater
given cash compensation. I n the cases of
A slantas (Turkey), Tarbda (Pakistan) and
Kiambere (Kenya) dams affected people did
not receive adequate compensati on to buy
alternate land."
Further, there have been many cbees i 1 1 us
trating inadequate compensati on, unsuitable
mitigation, and lack of recourse, including
the Sri Sal I am proj ect i n I ndi a and the Kao
Laem in Thailand." Dd ays in compensa-
tion provisions titles to landholdingsand
houses and provision of basic services have
occurred. C ases i 1 1 ustrati ng i nordi nate
dd ays - from 5 to 15 years - i ncl ude the
A siwan H igh dam i n Egypt, the N an^aeto i n
Togo, the A ko93mbo i n G hana, the I ta i n
Brazil, and the Bhumibol in Thailand."
Resettlement sites are often selected with-
out reference to the aval I abi I i ty of I i vd i -
hood opportuni ti es or the preferences of
displaced persons themselves They have
often been forced to resettle in resource-
depleted and envi ronmental ly deg'aded
areas around the rearvoi r. Such I ands
rapi dl y I ost thd r capaci ty to support the
resetti ed popul ati on . A mong the earl i est
i nstances i s the Li u- Yan- Ba proj ect on the
Yd I ow R i ver i n C hi na, wh i ch di spl aced
40 000 peopI e from ferti I e val I eys and
rd ocated them to wi ndsiwept upl ands
Erosion and I oss of fertility ultimatdy led to
the abandonment of pal nstaki ngly reclai med
farmland, and the drastic reduction of
farmi and I ed to extreme poverty^ ^ Si mi I ar
experiences have been recorded from H oa
Binh in Vietnam Sirindhorn in Thailand,
BatangAi in Sarav\ak Malaysia, and other
ri ce-growi ng East A si an countri es wi th I arge
rural populations"
T he I OSS of cul ti vabi e I and and i nabi I i ty to
gain good-quality replacement land has
significantly affected indigenous peoples and
peasant farmers ExampI es are the C hi nan-
tec and Mazatec I ndi ans displaced by the
M igud A leman and Cerro de Orro dams i n
Mexico; theKuna and Embera people in
Panama; the Parakana, Asurini, and Gavio
da M ontanha people i n Brazi I ; and the
Tonga i n Zambia and Zi mbabv\e."
The replacement of agricultural land, basic
services and infrastructure at resettlement
sites has often fai led to material ise, was
i nadequate, or was dd ayed for many years
Absenceof livdihood opportuni ties forces
affected people to abandon reffittlement
si tes and mi grate. ExampI es i ncl ude Tarbd a,
where al I otted agri cul tural I and v\as of poor
quality and basic services such asdectricity
health facilities and schools were not
provided. Electricity was only provided after
25 years Si mi I ar experi ences are recorded
from resetti ement si tes at Tucurui , Si ri nd-
horn dam i n T hai I and, and A kosombo i n
The Report of the World Commission on Dams
107
Chapter 4
An inverse relationship
between the scale of
displacement and the
possibility of properly
carrying out
resettlement is evident.
G hana.^^ In northeast
T hai I and, 15 000 farmi ng
fami I i es v\ere I eft wi thout
lands asa result of failed
reffittlement schemes
betv\een 1960 and 1970."
G overnment reports i n
C hi na characterised reser-
voi r resettlement problems
as's^en difficulties^ (qui
nan) and 'four inadequacies' (si cte). The
seven difficulties include shortages of
electricity, drinking water, schools, food,
medical services and means of communication
and transportation. The four inadequacies
refer to the insufficient amount and poor
quality of irrigation, housing, flood control
and reservoir maintenance facilities."
Reffittlement programmes have predomi-
nantly focused on the process of physi cal
relocation rather than on the economic and
soci al de/d opment of the di spl aced and
other negati vd y affected peopi e.' ' Lack of
accountabi I i ty on the part of the state for
promised entitlements has led to poor (and
i ncompi ete) i mpl ementati on of resetti ement
measures. Finally I ongdd ays in the onset of
resettlement programmes are common and
lead to great uncertai nty and
p^hologcal and axial anxiety
for those awai ti ng resetti ement.
These and other problems have
SB/erdy eroded the effectiveness
of reffiitti ement and rehabi I ita-
tion programmes i n creati ng
de/d opment opportunities for
the resettled and have hast-
ened the ri sk of i mpoveri sh ment for those
bang resettled.
T hat the I i vd i hoods of those resetti ed have
not been restored therefore comes as I itti e
surprise. At least 46% of the 10 mi 1 1 ion
C hi nese resetti ed as a consquence of
reservoirsarestil I in 'extreme poverty.*" In
the case of I ndia, 75% of the people dis-
pl aced by dams have not been rehabi I i tated
and are i mpoveri shed.' ' A monitori ng study
i n 1993 found that 72% of the 32 000
di spl aced peopI e from the Kedung O mbo
dam i n I ndonesi a were vjorse off after
reffitti ement." Conditions among the 800
ethnic minorityNya Heun families dis-
placed bythe recently constructed Houay
Ho dam in Laos are reported to be appal ling,
wi th peopI e sufferi ng from SB/ere I ack of
food, shortage of arable land and i nsufficient
clean v\ater."
Often the sheer scale and le/d of displace-
ment makes adequate rehabi I i tati on and
livdihood restoration difficult. An inverse
rd ati onshi p between the seal e of di spl ace-
ment and the possi bi I ity of properly carryi ng
out reffitti ement ise/ident. For example,
the i nundation zone of the Danj iangkou
proj ect i n the H uba provi nee of C h i na,
implemented in 1958, covered four rural
counti es and 345 vi 1 1 ages. A I though the
C hi nese G overnment tri ed hard i n the
1980s and 1990s to i mprove the I i vi ng
standards of the physi cal I y di spl aced i n the
Danjiangkou area, many unsolved problems
persist. I n 1996, an estin^ed 35 000 of
those resettled around the city of Shiyan
had incomesbdow the official poverty
I i ne.** A nd i n I ndia, the sheer e>ctent of
di spl acement i s n^ki ng resetti ement a
daunti ng task for the Sardar Sarovar project
(see Box 4.3) . Si nee the start of the resetti e-
ment process i n 1984, 1 ess than 20% of the
recogni sd di spl aced peopI e have been
reffittled."
Elements for positive
mitigation, development and
resettlement outcomes
I mpoveri shment of affected people is
i ncreasi ngl y seen as unacceptabi e but i t i s
al so un necessary si nee there are a wi de
108
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
range of opportunities available for making
not only resettlers, but all affected people
project beneficiaries. This is in the interests
of all stakeholders since, as beneficiaries,
affected people add to the stream of project
benefits, while reducing costs. T he problem
of making them beneficiaries lies not with
affected people, who time and again have
shown the capacity to respond to opportuni-
ties that are available, but with the inade-
quate laws, policies, plans, financing capaci-
ty and political will of governments and
project authorities.
For resettlement to lead to the development
of those resettled, the process has to address
the complexities of resettlement itself and to
effectively engage the full range of political
and institutional actors. A positive outcome
requires several enabling conditions such as
low level of displacement, resettlement as
development policy with supporting legisla-
tion, a combination of land and non-land
based sustainable livelihood provisions,
strong community participation and ac-
countability and commitment from govern-
ment and project developers.
Providing a legal framework that governs
the process of displacement is important for
protecting rights of affected people. For
instance, C hina's Reservoir Resettlement
A ct specifies the rights of affected people
and defines the obligations of the State and
the procedures for settling conflicts and the
redress of complaints."^ Recent changes in
C hi nese pol icy srve as an i nteresti ng nxxjd
for other countri es M i n i mi si ng di spl ace-
ment is another enabi i ng condition to
effectively address resttlement needs
I n somecass project proponents have
rrede an effort to resetti e peopi e as commu-
nitiesin order to minimisesocio-cultural
disruptions IntheKainji project, Nigeria
measures were taken to mai ntai n communi-
ty cohesion and identity" Social science
i nput had a strong i nfl uence i n determi ni ng
the outcome there. Baseline demographic
and socio-cultural studies played an i mpor-
tant rol e i n i nformi ng pi anners about
distinct social and cultural features of people
I i vi ng i n the proposed i mpact areas
I n cases where compensation packages were
negotiated with project affected people and
other stakeholders the process has resulted
i n fewer i nstances of i nj usti ce and
better outcomes for the resetti e-
ment process. Even where e/ery-
one may not see negotiated
compensation as the most appro-
priate or effective option, affected
peopletendtofeel more satisfied
for havi ng engaged i n the negoti-
ation process^ as attested by the
Zi mepan resettlement program i n
Mexico." I n cas of the M ubuku
1 1 1 hydropower project i n U ganda,
publ i c consul tati on meeti ngs wi th
Ugandan local council ^em and comnxi-
ni ty I eaders were hd d for i denti fi cati on and
valuation of land.*' This minimised dis-
pl acement by enabI i ng adj ustments to the
routi ng of canals
T he pi an devd oped by the C h i nese govern-
ment for peopI e affected by the X i aol angdi
dam provi des an exampi e of an i ntegrated
strategy that combines land and non-land
baffid act i vi ti es to ensure I i vd i hoods ' "
Resettlement plans focus on building the
ski 1 1 s of the adversd y affected th rou^
substantial i nvestments i n i mparti ng nev\<
rd e/ant ski 1 1 s that are i n derrend i n the
regonal and local economy, enhancement
of exi sti ng ski 1 1 s and sped al measures to
faci I itate capacity bui Idi ng anx)ngst women.
This approach calls for resttlement plans to
devd op I i n kages betv\een negati vd y affect-
For resettlement to lead
to the development of
those resettled, the
process has to address
the complexities of
resettlement Itself and to
effectively engage the
full range of political and
Institutional actors.
The Report of the World Commission on Dams
109
Chapter 4
Empowering people,
particularly the
economically and socially
marginalised, by
respecting their rights
and ensuring that
resettlement with
development becomes a
process governed by
negotiated agreements
is critical to positive
resettlement and
rehabilitation.
ed people and other sectors of the economy,
underlining the importance of incorporating
the overall development of the affected
economy into the resettlement programme.
An inclusive process involving all groups -
including host communities- enables
initiatives to promote resettlement as
development to be managed jointly by the
people and project and government institu-
tions as a long-term process that can con-
tribute to the stream of project benefits. In
the case of Ita dam in Brazil, a
sustained struggle by the local
community for proper resettle-
ment resulted in joint negotia-
tion for benefit- sharing, resettle-
ment as a community and
consultative implementation of
the programme. 51 Theaccord
between affected people and the
utility El ectrosul resulted in a
comnxinity managed resettle-
ment programme.
Evol vi ng pol i cy frameworks i n
countri es such as G hana and
China reflect two of the wore
positive attempts to learn from
past resetti ement experi ence. I n the G hana-
iancas, with the benefitof the administra-
tive continuity of the Volta Resettlement
Authority planners at Kpong dam were able
to avoi d some of the mi stakes made earl i er
atAkosombo." Whilethe legal framework
related to land and resttl ement is compre-
hensive and i mprovement was noted at
Kpong not all good intentions were success-
fully pursued." China's resettlement experi-
ence before 1980 v\as i n many v\ays i nade-
quate, and the new pol i cy sou^t to i mprove
matters. How effectively such policyinv
provements are transi ated i nto successful
resettlement and development outcomes
rerreinsto be seen.
Past and current experi ences of affected
people and the rapidly changi ng context
rei nforces the argument that di spl acement
needs to be located in the broader perspec-
tive of the tensi ons between the I ocal versus
the national and international interests Just
as displacement is not an ine/i table conse-
quence of i nfrastructure devd opment,
reffitti ement need not necessarily result in
impoverishment. Empowering people,
parti cul arl y the economi cal I y and soci al I y
marg nal i sed, by respecti ng thei r ri ^ts and
ensuring that resttl ement with de/d op-
ment becomes a process governed by negoti-
ated agreements is critical to positive
reffitti ement and rehabilitation.
Indigenous Peoples
Large dams have had serious impacts on the
lives, livelihoods, cultures and spiritual
existence of indigenous and tribal peoples.
D ue to neglect and lack of capacity to secure
justice because of structural inequities,
cultural dissonance, discrimination and
economic and political marginalisation,
indigenous and tribal peoples have suffered
disproportionately from the negative im-
pacts of large dams, while often being
excluded from sharing in the benefits." In
the Phi I i ppi nes, al most al I the larger dam
schemes that have been built or proposed
were on the land of the country's 6-7
million indigenous people." Similarlyin
I ndia, 40-50% of thos displaced by de/d -
opment projects were tribal people, who
account for j ust 8% of the nati on's 1 bi 1 1 i on
peopi e." T hese costs are not bal anced by
any reed pt of sen/i ces from dams or by
access to the benefi ts of anci 1 1 ary servi ces or
i ndi rect economi c multi pi i ers i n the formal
economy."
I n general, de/d opment planning and
i mpl ementati on have i nadequatd y ad-
110
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
dressed the special needs and vulnerabilities
of indigenous and tribal peoples. In many
cases, large dams have only perpetuated this
disregard and exacerbated the problem -
even causing multiple displacements of
these peoples. The Waimiri-Atroari of
northern Brazil numbered 6 000 in 1905.
Eighty years later, massacres and disease left
only 374 Waimiri-Atroari alive. In 1987,
the Balbina dam flooded two of their
villages, displacing 107 people.^^ Similarly,
in the unique Biobio region in Chile, the
Pehuenchesv\aie pushed higher and hi^er
up i n the val I ey throughout the I ast century.
The Pangueand Raico projects would
i nundate nxch of the remai ni ng ancestral
land of the Pehuenches" For the I baloy
i ndi genous peopi e currenti ylivinginthe
fertileAgno river basin in thePhilippineSi
the San Roque dams v\oul d be the thi rd to
impact their lands" Similar experiences are
recorded in Indonesia, Malaysia, Thailand,
Brazil, Argentina, Mexico, Panama, Colon>
bia, Guaterrala, United States Canada, and
Siberia."
For i ndi genous peopI es and ethni c mi nori -
tiesy dan> induced displacement can trigger a
spi ral of e/ents that spreads beyond the
submergence area. A casein point is the
situation of the 100 000 Chakma people
di spl aced by the Kaptai hydnopower dam i n
theChittagongHill Tracts Ban^adesh. The
proj ect submerged tv\o-f i fths of thei r cul ti -
vable land; as a consequence, 40 000 C hak-
ma left for I ndi a and another 20 000 v\aie
supposed to have moved i nto A rakan i n
Burma. T he C hakma have ne/er gai ned
citizenshi p for themselves or thei r chi Idren
in India. The conflict triggered by land
shortage between the Buddhist C hakma
people and M usi i m Bengal i settlers has cost
10 000 1 i ves si nee the proj ect was compi eted
in 1962."
T he ri ^ts of i ndi genous peopI es
and dthnic minorities are often
poorly defi ned or enshri ned i n the
national legal frameiAorks and
consquently thei r entiti ements
ha^e lacked effective protection.
T he Bayano dam i n PananB that
forced the i ndigenous Kuna and
E mbera peDplesfromthdrtradi-
tional territories reffittled them
on land that was I ess fertile and subject to
encroachment by loggers The Panamanian
government ^emati cal I y fai I ed to ful fi I
agreements made with the affected i ndi ge-
nous people at the ti me of construction, as
v\el I as commi tments negoti ated I ater.
A mong the vi ol ati ons was the govern ment's
fai I ure to compensate adequately for the I oss
of traditional territories and provide legal
ti tl es to the new I ands' ' W hat happened i n
Panama i n the 1970s i s si mi I ar to what has
happened in Malaysia in the 1990s" In the
caseof theBakun project, ri^ts to indige-
nous common land in theUlu Bdagasite
were not recognised or properly assesed."
Industrial countries^ experience with indige-
nous peopI es i n the era of bui I di ng I arge
dams was not very different from that of
developing countries Dams built during the
1950s and 1960s cost the i ndi genous nati ons
oftheMissDuri River basin in the United
States an esti mated 142 000 hectares of thei r
best I and, i ncl udi ng a number of buri al and
other sacred sites i eadi ng to further i mpover-
ishment and ^ere cultural and errotional
traunB. A guarantee ised to rational is the
plan - that SDme 87 000 hectares of I ndi an
land vjodd be irri^ed - was scrapped as the
project neared completion."
Despite changes over the years new projects
in industrial countriesrais similar issues A
case i n poi nt i s the second stage of the
C hurchi 1 1 Rivers project i n Labrador,
The Report of the World Commission on Dams
111
Chapter 4
C anada, consisting of two dams
and two river diversions that will
'J flood a large area of hunting
territory of thelnnu people who
live on both sides of the provin-
cial boundary. The Innu have
yet to be clearly recognised as
theownersof their lands, and
the whole area is the subject of
an unresolved Innu land claim
currently being negotiated with the C anadi-
an government."
I n the last two decades> i ntemational and
nati onal I aws prog'essi vd y ai med at empow-
eri ng i ndi genous peopi es to pi ay a deci si ve
role in de/dopment planning and imple-
mentation. Constitutions in 93me countries
recogi i se the vul nerabi I i ty of i ndi genous
peopI e i n mai nstream de/d opment process-
es arisi ng from thd r disti net culture and
hi story and have desi gned safeguards to
protect thd rri^ts" The scope of interna-
tional law hasvvidened and currently indudes
a body of conventional and custon^ry norms
concemi ng i ndi genous peDples gDunded on
ffilf-deteml nation. I n a context of i ncreasi ng
recognition of thesdf-determination of
i ndi genous peopI es the pri nci pi e of free,
prior, and informed consent to de/dopment
proj ects and pi ans affecti ng these groups has
emerged as the standard to be appi i ed i n
protecti ng and promoti ng thd r ri ^ts i n the
de/dopment process.
Downstream Livelihoods
Downstream impacts can extend for many
hundreds of kilometres and wdl beyond the
confines of the river channd. The serious
implications come to the fore only after
completion of thedam and a number of the
impactsonlydevdop overtime. In general,
the downstream riverine communities have
lacked social, economic and political power to
seek mitigation, let alone devdopment
benefits.
Downstream communities throughout the
tropics and subtropics face some of the most
drastic impacts of large dams, particularly
where the changed hydrological regime of
rivers has adversely affected floodplains that
supported local livdihoodsthrough flood-
recession agriculture, fishing, herding and
gathering floodplain forest products. The
disruption of downstream economies that
results from the insertion of a dam and the
subsequent reduction in natural floods can
create uncertainty in livdihoodsand render
existing skills unproductive - leading to
migration, dependence on informal wage
labour in urban areas and impoverishment.
I n northwestern N igeria, the Bakolori dam
on the Sokoto R iver reduced average flood
levels by 50%, leading to a fall in cropped
area of 53% and to a quarter of the house-
holds dropping dry-season cultivation as a
component of their livdihood strategy"
Similarly significant impacts on floodplain
ag'i culture are seen in Niger, Chad, Nigeria,
Sudan, Senegal and M al i I n the case of
Manantali dam on the Senegal River,
between 500 000 and 800 000 people
suffered from I os of access to producti ve
floodplains that provided most or part of
thd r means of survival T he creation of
the Sobradi nho reservoi r i n Brazi I affected
the I ivd i hood of 11 000 farm fami I ies
downstream from the rean/oi r who depend-
ed on traditional floodplain agriculture."
TheWCD Case Studies reveal that the
cunxilative impact of Tarbda dam and Kotri
barrage has affected the grazi ng acti vi ti es of
pastoral communities in Pakistan.
Substanti al I os^ to downstream fi shery
production as a result of dam construction
are reported from around the world. A long
with subsistence agriculture, fisheries
112
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
constitute an important livelihood activity
among large rural populations as well as an
important low cost source of protein. M any
of these households depend on fisheries
either as their primary or a supplementary
source of livelihood. T he impact of dams on
fisheries is no less in temperate regions,
where salmon runs over large stretches of
river in N orth A merica and C anada have
been destroyed, affecting the livelihood,
food security and cultural organisation of
N ative A merican communities. T he G rand
C oulee C ase Study reports that the loss of
salmon also had severe cultural and spiritual
consequences integral to the First N ations'
way of life. 0 ne problem faced by indige-
nous peoples who live downstream from
dams in boreal zones is the discharge of
power generating water on top of frozen
rivers during winter, as in case of the Koly-
ma R iver in northern Yakutia."
A dverse i mpacts on downstream f i sheri es
have been SB/ere, e/en i n proj ects i mpl e-
mented i n the 1990s T hese i mpacts v\ere
not adequately assessd i n, among others
the U rra I pnoj ect i n C ol ombi a; the Si n^ar-
ak project in West Sumatra, I ndonesia; the
Lingintan project in China; Theun Hin-
boun i n Laos and Pak M un i n T hai I and.' "
Downstream comnxini ties and I ivd i hoods
are typi cal I y I eft out of any expl i ci t reckon-
i ng of proj ect i mpacts and subsequent efforts
to manage these impacts - apart, perhaps
from installation offish passages One
explanation for this is that the downstream
communities are not only dispersed but also
have typically lacked social, economic, and
pol i ti cal pov\er to press thei r case for mi ti ga-
tion and development. Whilethe people
affected by the fl oodi ng of the rearvoi r
could assert their right to mitigation by
refusi ng to move, those affected downstream
have no such leverage.
Downstream i mpacts are not
onl y anx)ng the nxst si gi i fi -
cant unasessed and unad-
dressed aspects of I arge dams
they are al so i ndi cati ve of the
magiitude and spread of
i mpacts asaxiated with an
altered river regme. The
extent to which mitigation
and development can be
desi gied and i mpl emented to
address these compi ex and di verse concerns
effectively is open to question. As demon-
strated i n a case from northern N igeria, an
exami nati on of the economi c val ue of
downstream \jees of water may al so provi de a
convi nci ng argument for stti ng asi de dam
projects (Box 4.4).
Box 4.4 Economic value of downstream floodplains, Hadejia-Nguru,
Nigeria
n northern N igena, extensive floodplains exists where the Hadejia and J ama'are
Rivers converge. The floodplains provide essential income and nutntion benefits
in the form of agriculture, grazing resources, non-timber forest products,
fuelwood and fishing for local populations, and help to recharge the regional
aquiferwhich is an essential groundwater source. However, in recent decades
the floodplains have come under increasing pressure from the construction of
the Tiga and Challawa Gorge dams upstream. The maximum extent of flooding
has declined from 300 000 hectares in the 1960s to around 70 000-100 000
hectares more recently with plans for a new dam at Kafin Zaki. Economic analysis
of the Kano River Project, a major Irngation scheme benefiting from the
upstream dams, shows returns to water of $1.73 per 1 000 m^ and when the
operational costs are included, the net benefits of the project are reduced to
$0. 04 per 1 000 m-
A combined economic and hydrologlcal analysis w/as conducted to simulate the
mpacts of these upstream projects on the flood extent that determines the
downstream floodplain area The economic gams of the upstream water projects
were then compared to the resulting economic losses to downstream agncul-
tural, fuelwood and fishing benefits (valued at $32 per 1 000 m' of water in 1989
prices). Given the high productivity of the floodplains, the losses in economic
benefits due to changes in flood extent for all scenanos are large, ranging from
$3 million to $24 million. As expected, there is a direct trade-off between
increasing imgation upstream and impacts on the floodplains downstream. Full
implementation of all the upstream dams and large-scale imigation schemes
would produce the greatest overall net losses, around $20 million
These results suggest that the expansion of the existing irrigation schemes
within the river basin is effectively 'uneconomic'. The introduction of a regulated
flooding regime would reduce the scale of this negative balance substantially to
around $16 million. The overall combined value of production from irrigation
and the floodplains would however still fall well below the levels expenenced if
the additional upstream schemes were not constmcted
Source: Acreman et al, 2000, Contributing Paperfor
WCD Thematic Review II. 1 Ecosystems
In the case of Manantali
dam on the Senegal River,
between 500 000 and
800 000 people suffered
from loss of access to
productive floodplains that
provided most or part of
their means of survival.
The Report of the World Commission on Dams
113
Chapter 4
Gender
G ender relationships and power structures
are all too often detrimental to women.
Extensive research has documented gender
inequalities in access to, and control of,
economic and natural resources. In Asia and
A frica for example, women may have use
rights over land and forests, but are rarely
allowed to own and/or inherit the land they
use.^^ Communities near theTarbda dam in
Pakistan practised the purdah ^em
(seclusion of v\omen) for centuries This
section employs the WCD Knowledge Base
to exami ne vvhether dams agg'avate, or
amel i orate gender di spari ti es
G iven the gender-bl i ndness of the planni ng
process I arge dam proj ects typi cal I y bui I d on
the i mbal ance i n exi sti ng gender rd ati ons
For affected comnxini ti es dams have wi d-
ened gender di spari ti es a ther by i mposi ng a
disproportionate share of social costs on
v«)men orthrou^ an inequitableallocation
of the benefits generated. Hov\ei/er, theWCD
KnovvledgeBasalsD providese/idenceof
csEES vvhere dams have sesved as opportuni ti es
for reduci ng gender di spari ti es^
pri mari ly among v\omen i n
househol ds or communiti es that
recei ve access to proj ect srvi ces
Widened gender
disparities
I n spite of the fact that many
countries and funding agencies
have adopted specific gender
policies in recent years aimed at
mainstreaming gender issues in
their development interventions, actual
project planning and implementation
continue to overlook gender aspects. A n
assessment by the World Bank's 0 ED of a
number of World Bank projects noted that
the experiences studied were largely
oblivious of the gender aspect of resettle-
ment.'" After the Asian De/dopment Bank
approved a gender pol icy i n 1998, a review
of its dam projects observed that the i mpacts
on gender at the project preparation and
i mpl ementati on stages were often not
consi dered.' ' W here pi anni ng i s i nsensi ti ve
to gender, project i mpacts can at best be
neutral , and at v\orst agg'avate exi sti ng
gender disparitiesto the extent of radically
affecti ng the pre- proj ect gender balance.
Dam proj ects often i mpose the gender bi as
of thede/doper (typically the state), with
negative effects for local arrangements that
provide I ivdi hood opportuni ties for women.
W hen the M ahav\el i dam i n Sri Lanka was
bui It the pre/alent i nheritance rule, which
al I ov\ed v\omen the i ndependent ri ght to co-
own and control land, was undermi ned by a
new arrangement that al lowed the house-
hol d to nomi nate one hd n usual I y a S3n
I n tri bal communi ti es i n I ndi a women do
not have land rights and therefore they have
not been compensated for the land they
have lost as users" I nstead women's
i nterests are seen as I i nked to the houshol d
and only men and major sons are given land
accordi ng to the I ocal govern ment's resetti e-
ment pol i cy for the Sardar Sarovar proj ect.
Women traditional I yhdd land ri^ts
amongst the egal itari an G wembe Tonga
community in Northern Rhodesia (now
Zambia). HowB/er, the British colonial
authorities that built the Karl ba dam only
recognisd men as land owners and women
lost thdr land without compensation during
displacement and resettlement."'
Forests fisheries and other common proper-
ty resources which support subsistence
I ivdi hoods are often not replaced during
reffittlement with v\omen often bearing a
disproportionate share of the resulting costs
T he Tarbd a C as Study notes that v\omen
114
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
have suffered more than men have from the
disruption of their social life resulting from
involuntary displacement from their ances-
tral land, which severed their relationship
with water, forests and other natural re-
sources. A t the Pak M un dam the loss of
local edible plants due to submergence
resulted in loss of income and sources of
subsistence. A gain this affected women
disproportionately, as they are responsible
for collecting and processing these plants.
T he general impoverishment of communi-
ties and the social disruption, trauma and
health impacts resulting from displacement
have typically had more severe impacts on
women. In Ghana, the general impoverish-
ment resulting from involuntary displace-
ment associated with the A kosombo dam
led to increased male migration to urban
areas and an increase in households headed
by women .^^ I n South Africa, farm-vwDrkers:
households headed by vvomen suffered
unduly during the displacement process
causd by the G ari ep and VanderkI oof dams
30% of men- headed householdsfol lowed
farmers to new farms compared to 15% of
women- headed households Asa result, 75%
of women- headed households ended up
I i vi ng for more than one year i n the no-
man's I and al ong the h i ^ ways cal I ed the
corridor, where some e/en gave birth. As
the Karl ba case i 1 1 ustrates> the i nfl ux of
i mmi g'ants duri ng constructi on and the
resulting urbanisation can increas le/dsof
sexually transmitted diseases and, more
recently HIV-AIDS pre/alence rates which
have negatively affected local women.
Displacement can make women's position
i nsi de and outsi de the fami I y more precari -
ous For example, at resettlement sites for
the Sardar Sarovar dam i n I ndi a, Karl ba i n
Zambi a-Zi mbabwe and N an^Deto dam i n
Togo-Benin, increased alcoholism n^rkedly
i ncreased domesti c vi ol ence.' ' As men face
powerlessnesSi women (and children)
become scapegoats" Reduced fishing
opportunities in coastal and mangrove areas
downstream of Tarbda dam destroyed the
structures of fami I i es tradi ti onal I y organ i sed
around thisactivity and accelerated male
out- migration. Women faced increaad
responsi bi I i ti es as de facto heads of hou^
holds while houshold income was severely
affected.
Whilewomen in affected communities bear
a di sproporti onate share of the costs they
have often had I ess access to the benefits
generated by dams The employment
created duri ng the construc-
ti on of I arge dams general I y
benefits men, as illustrated in
the G rand C oul ee C ase Study
where it was only at the later
stages of the constructi on
phase that the government
ag'eed to hi re women, and
onl y for the admi ni strati ve
clerical work. The allocation
of the i rri ^ed I and made aval I abl e by dams
is also often done i n a manner that exacer-
bates gender i nequal i ti es I n the M ahav\el i
irrigation scheme in Sri Lanka, fully 86% of
the land allocations were made to men, and
only two local women-headed households
v\ere granted land. I n addition, the preva-
lent inheritance rule, which allowed women
the independent ri^t to co-own and
control land, was undermined by a new
arrangement that al lowed the household to
nominate one heir, usually a son."
Dams as opportunities for
addressing existing inequalities
T here are al so exampi es i n the Knowl edge
Base where dams have provi ded benefi ts to
women. As gender is a relational concept.
While women in affected
communities bear a
disproportionate share of
the costs, they have
often had less access to
the benefits generated
by dams.
The Report of the World Commission on Dams
115
Chapter 4
Large infrastructure
projects like dams or
ttieir associated irrigation
scliemes can present
unique opportunities for
reforms.
access by women to the benefits generated
by a dam is a necessary but not sufficient
condition for positive gender impacts. As
these i mpacts are si dom
documented, I i ttl e i s l<nown
regardi ng tine v\ays i n whicli
benefits generated by dams
affected exi sti ng gender
di spari ti es and rel ati onsh i ps
W liere dams liave i mproved
tlie general supply of sen/ices
(see Table4.1) the increased
aval I abi I i ty of water for
household uses electricity and food
(through irrigation) are likely to have
benefited W3men by reduci ng ti me spent on
choresand improving nutrition. Where
soci al srvi ces are provi ded as part of reset-
tlement programmes these may represent an
improvement compared to the pre-displace-
ment situation. For example, 80 000 people
resettled from the A kosombo dam benefited
from servi ces i ncl udi ng the fol I owl ng: 82
school blocks 46 markets 146 public
latrines 52 boreholes 6v\ellsand 162 water
stand pipes"
Where dams achieve an improvement in
I i vi ng standards i n i mpact areas thi s can
have a posi ti ve spi 1 1 over effect on gender
equity For example, improved family
i ncome resul ti ng from i rri gated ag'i cul ture
at A si antas dam enabi ed farmers to g ve
both boysandgirlshi^er education. This
al ong wi th the eradi cati on of i 1 1 i teracy has
contri buted to endi ng polygamy i n the
basin.
Becaus gender disparities and e/en svere
mBrginalisation of W3men exist in many
countri es I arge i nf rastructure proj ects I i ke
dams or their associated irrigation schemes
can present unique opportunities for re-
forms i n areas I i ke land tenure, that can
contribute to reversing the situation. Cases
in Egypt, Tunisia, and Sri Lanka demon-
strate how land tenure reforms have benefit-
ed poor peopi e ( i ncl udi ng women) recrui ted
as new I andhol ders i n i rri gati on schemes' '
A survey of 32 vi 1 1 ages conducted i n 1991-
92 shov\ed that women owned 6% percent
of the al most 2 500 i rri gated pi ots i n the
Middle Valley of the Senegal River. While
th i s refl ects a conti n ued gender i mbal ance,
i n the context of the Senegal val ley it
represents a positive gender i mpact. I n
traditional ^emsof rainfed and recession
ag'i cul ture W3men and mergnal communi-
ties had only \jse and not property ri^ts I n
this case government agencies used the
opportunity of central ised control over the
allocation of irrigated land to provide
women- headed households with ownership
rights"
Cultural Heritage
A I though i mprovements have been noted i n
recent years potential cultural heritage
impacts are sti 1 1 largely ignored in the
planning process especially in industrialised
countri es" ' Large dams have had si gni fi cant
adverse effects on this heritage throu^ the
I OSS of local cultural resDurces (temples
shrines and sacred elements of the land-
scape, artefacts and buildings) and the
submergence and deg'adation of archaeolog-
i cal resDurces ( pi ant and ani mal rerrei ns
burial sites and architectural elements). The
I atter may be part of the cul tural I i fe of I ocal
communities or they may predate the
arrival of people currently i nhabiti ng the
dam site. Shoreline erosion processes can
expose subsurface archaeol ogi cal remai ns
encouragi ng looti ng and i 1 1 icit digg ng for
artefacts and val uabi e remai ns Dams can
al so cause I oss or damage of cul tural heri tage
through land reclamation and irrigation
proj ects and the constructi on of power I i nes
roads lai I v\ays and workers towns
116
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
I n most cases no measures have been taken
to minimise or mitigate the loss of cultural
and archaeological resources. A ffected
communities repeatedly raised the treatment
of burial sites at the W C D R egional C onsul-
tationsand other public hearings During
the construction of the Inanda dam in
South A frica, remains of human bodies
buried under the reservoir site were ex-
humed and all buried in one hole, profound-
ly disturbing local communities^" The
G rand C oul ee C ase Study records the
submergence of N ati ve A meri can burl al
sites by the dam vvaters T he tri bes used
funds provided by the authorities and their
own means to relocate burial sites exposed
by recedi ng rearvoi r v\0ters. T h e ri sk of
submerging ancestral graves is one of the
main reasons the H imba people in N amibia
oppose the planned Epupa dam."
T he assessment of lost or buried cultural
heritage resDurces not di recti y I i nked to
local people has been at I east equally
significant, but often more difficult to
estimate. The difficulty lies in the fact that
no investigation of cultural and archaeolog-
cal resources has taken pi ace as part of the
pi anni ng process of most dams. G i ven that
ri ver val I eys often hosted the most anci ent
ci vi I i sati ons the i mportance of I osses from
existing dams can be assessed by default, on
thebasisofthequality and quanti ty of fi nds
i n areas affected by dams where some
cultural heritage assessment did take place.
W hen the M adden dam i n Panama dropped
to itslowest historical limit in 1998, it
exposed thousands of artefacts cultural
features and human burial sites" In 1988 in
I ndi a, reconnai ssance surveys i n 93 of the
254 villages to be submerged in theNarma-
da Sagar dam i mpoundment area yielded
h undreds of archaeol ogi cal si tes rangi ng
from Lower Palaeolithic to historic temples
and iron smelting sites"
IntheWCD Case Studies two
dams- Pak M un and Aslantas
- v\ere redesigned to avoid
impacts on cultural and
archaeological resources The
Asv\an H igh dam (see Box
4.5) admittedly an exceptional
case, i 1 1 ustrates not only how
i mportant potenti al I osses of
cultural heritage can be, but
also how efforts to conserve cultural resourc-
es can i mprove understandi ng of cultural
heritage. A study i n the U nited States
demonstrated that althou^ submergence
may be a way of preservi ng archaeol ogi cal
resources it is more cost-effective to exca-
vate and manage these resources prior to
resen/oi r i nundati on than to I eave them for
possi bl e future underwater archaeol og cal
expeditions"
Despite the established potential for signifi-
cant and often irreversible I osses of cultural
resources due to dam construction, cultural
heritage management is still not adequately
considered i n the pi anni ng process I n
Turkey, for example, only 25 of 298 existing
dam projects have been surveyed for cultural
heritage, and of these only five have had
^erratic rescue work conducted." In
A rgenti na, despite the fact that many
Box 4.5 The Aswan High dam: a milestone in the history of
archaeology
The potential adverse effects of the Aswan High dam on the monuments of
ancient N ubia were recognised in 1954, one year after selection of the dam site
Thanks to an international effort driven by UN ESCO, the ancient monuments of
Egypt and Sudan were saved from inundation. Equally important, the interna-
tional rescue operation led to decades of intensified archaeological research in
the vicinity of the dam, greatly enhancing understanding of the civilisation of
N ubia. This radically altered the knowledge of Egyptian archaeology resulting in
the rewnting ofthe prehistory of the Nile Valley What the Director General of
UN ESCO called 'a task without parallel in history' subsequently led to the
launch of numerous other operations supported by UN ESCO to save world
cultural hentage
Source: Hassan, 2000, in Brandt and Hassan, 2000,
WCD Working Paperon Cultural Hentage Management
The Report of the World Commission on Dams
117
Chapter 4
provinces have updated their legislation on
cultural heritage, cultural resources manage-
ment activities related to large dams were
either poorly done or not at all.^^
The I ndi a Case Study ra/ealsthat although
projects I i ke N armada Sagar, Tungabhadra,
Bhadra, and Nagarjunsagar have paid sovre
attention to major temples and pi aces of
\Nor^\ p, al most al I the dams bui It so far
suffer from I ack of cul tural heri tage studi es
(let alone mitigation measures). In China,
the T h ree G orges Pro] ect i 1 1 ustrates the
potential to do damage throu^ neglect of
cultural heritage. The combined problems of
timeconstraintSi under- budgeting, and a
shortage of qualified personnel are seriously
hampering the salvation and prearvation of
the impressive archaeological and cultural
sitesin the areas to be affected."
Human Health
Environmental change and social disruption
resuiti ng from large dams and associated
i nf rastructure devd opments such as i rri ga-
tion schemes can have significant adverse
health outcomes for local populations and
downstream communities The issueof
equity- in termsof pre-existing nutritional
and health conditions of the population and
the capaci ty to resi st new heal th probi ems -
is at the root of the advers health i mpacts
of dams' ' A mong the resttl ed, access to
drinkingv\0ter, health services and ability to
cope with new social and physical environ-
ment determines health conditions
N umerous vector- borne di seases are asaxi -
ated with reservoi r de/dopment i n tropical
areas Schistos3miasis(orBilharzia) spread
throu^ snailsbreeding in still orslow-
movi ng waters was a si gni fi cant publ i c
health problem that emerged from many
early projects such as Kariba, Aawan and
AkosDmbo." Rift Valley Fe/er has also
spread due to the A swan and Kari ba dams
and irrigation ^ems along the Blue Nile in
Sudan " M ost reservoi r and i rri gati on
projects undertaken in malaria-endemic
areas i ncrease mal ari a transmi ssi on and
disas."- T he increas was more pro-
nounced for dams bd ow 1 900 meters of
altitude and less pronounced above that
altitude."' Similarly in India, theSardar
Sarovar and U pper Krishna projects demon-
strated a high potential for mal ari a transmi s
sion i n the short term and thereafter leadi ng
to transmission ofjapanese encephalitis'"
In new dams in tropical, sub-tropical, and
arid regions there is rapid eutrophi cation
resul ti ng i n probI ems of excessi ve aquati c
weed growth or 'blooms: of toxic cyanobac-
teria. Thisisrdnforced by enhanced nutri-
ent pol I ution throu^ growth of towns
ag'i cul ture and mi ni ng operati ons i n the
catchment. In China, a high incidence of
pri mary I i ver cancer has been I i nked to the
preance of cyanobacterial toxi ns i n dri nk-
ingv\ater.'°*
A nother problem is the accunxilation of
high I e/ds of mercury in reffirvoirfish.
Mercury naturally present in a harmles
form in many sdIIs is transformed by bacte-
ria feedi ng on the rotti ng biomass i n reser-
voi rs i nto methyl mercury a central nervous
system toxi n . A I ternati vd y eff I uent from
human activities such as mining may lead to
the accunxil ati on of mercury i n reservoi rs
A s methyl mercury passes up the food chai n
it becomes i ncreasi ngly concentrated i n the
ti ssue of the ani mal s eati ng contami nated
prey potentially threatening human health
(see Box 4.6).
Socio-cul tural disruptions can be traumatic
for communiti es T he Kari ba C ase Study
reports on the strong emotional response of
118
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
the G wembeValley Tonga to their involun-
tary resettlement. W hen 50 people died a
mysterious and sudden death in 1959 in the
Lusitu area, those relocated attributed these
deaths, together with deaths from dysentery
and measles that occurred earlier in the year,
to 'bad spirits'. The 'good spirits' of the
Tonga had been drowned by the lake and
could no longer protect them from such
ailments.
Destruction of community productive bases
in agriculture and fisheries can give rise to
food shortages, leading to hunger and
malnutrition. The Karl ba Case Study recalls
that the serious food shortages of 1958-60
can be largely traced to resettlement-
associated factors. Food shortages due to
resettlement are also reported in Vietnam,
C hina, M alaysia, Thailand and India.^"^
In recent yearSi the high incidence of HIV/
A I DS in construction and sttlement areas
i s a grovvi ng concern. I n the Lesotho H i ^-
lands Project Area, infection rates are far
higher than i n surroundi ng areas'" Con>
munities are concerned about transmission
from migrant vvDrkers arri vi ng to vjork i n
theMaguga project in Sv\aziland.""
I nitial asessment and other available
information is often not considered until the
i mparts n^nifest themselves i n alarmi ng
proportions and mitigation measures are
unprepared and inadequate. When the
Diamaand Manantali dams were filled in
the mid-1970s an epidemic of Rift Valley
Fever occurred, schistosomiasis pre/alence
rates reached record level sand riverside
inhabitantsexperienceddiarrhoeal disease,
malnutrition and malaria."' All thisoc-
curred despite the experiences vvith the
transmi ssi on of these di seases from earl i er
A f ri can dams A mong the i mpact forecasts
for the Tucurui regi on v\ere the resul ts of a
National Research Institute for A mazonia
study for Eletronorte underlining the
association between macrophytesand the
proliferation of insect vectors. A fter Tucurui
was filled in 1984, an unusual proliferation
o^M ansonia mosquitoes in rural areas close
to the reservoir forced farm families to leave
their homes. Test subjects received over
500 bites per hour at the height of the
infestation.
Despite several decades of precedence,
documented experiences from different
regions, and the availability of sophisticated
assessment techniques and instruments such
as H ealth I mpact A ssessment, health
concerns were not integrated in the design
of the dams and infrastructure to the extent
possible. M itigation suffered from lack of
preparedness and commitment and health
concerns were not addressed effectively For
Box 4.6 Mercury and human health at Tucurui
M ercury can have lasting negative impacts on human health. Levels at 50 to 125
mg/kg in human hair indicate a low nsk of neurological damage. Foetal damage
can occur at half the lower limit. Clearly defined neurological effects appear at
concentrations of over 125 mg/kg.
n the early 1990s scientists from the University of Helsinki in Finland carried out
a series of studies at Tucurui to assess the origins and effects of mercury in
tropical reservoirs, with co-operation of Brazilian institutions (including
Electronorte - the utility operating Tucurui), The studies provide the following
findings:
■ Tucunare fish caught at five locations had an average of 1.1 mg/kg net
weight of mercury, more than double the maximum safety level of 0.5
mg/kg
■ the average concentrations of mercuryfound in hairtaken from adults in
the fishing community was 47 mg/kg (with a standard deviation of
10.2mg/kg):
■ one individual was found with a concentration of 240 mg/kg ;
■ this concentration was seven times that of non-fish eating people, adults
n this group had fish at meals 14 times a week; and
■ the mam source of mercury is gold mining operations upstream
The WCD Case Study revealed considerable lack of agreement with the results
of the studyon the part of Electronorte. Given the irreversible, accumulating
and senous nature of the health impacts of mercury poisoning further research
to resolve this issue is of great importance.
Sources: WCD Tucurui Case Study; ] obin, 1999, pl75.
The Report of the World Commission on Dams
119
Chapter 4
After Tucurui was filled
in 1984, an unusual
proliferation of
Mansonia mosquitoes in
rural areas close to the
reservoir forced farm
families to leave their
homes.
those affected, this translates
into an increase in pain and
suffering and a decline in
educational achievement
and productivity. It can also
put severe pressure on the
capacities of public health
systems in developing
countries
Equity and the Distribution
of Costs and Benefits
To this point, the G lobal Review has
identified - and in some cases quantified in
physical, economic, environmental, or
social terms - a series of costs and benefits
that arise from the decision to build a large
dam. A s indicated, shortfalls in technical,
financial, and economic performance led a
significant number of the large dams in the
W CD Knowledge Base to fail a limited post
construction cost-benefit evaluation using
the metric on which they were approved.
The G lobal Review has also established that
building and operating dams has serious -
and largely negative impacts - on ecosys-
tems, biodiversity and human livelihoods.
This chapter has documented a wide range
of adverse social impacts due to large dams
including displacement, health and cultural
heritage impacts Large dams have also
provided substantial socio-economic bene-
fits through the delivery of water, electricity
and flood control, as well as various ancil-
lary services In many cases these benefits
extend beyond the time frame proposed in
the original project documents
peoples), or unrepresented (such as future
generations). Considering present societal
commitments to human rights and sustaina-
ble development it is clear that dams in the
Knowledge Base have led to inequitable
outcomes In the light of the range of
opportunities that exist for making affected
people beneficiaries and enabling them to
contribute to the stream of project benefits,
such outcomes are unacceptable on equity
grounds.
I n the past, if the expected benefits of a dam
exceeded the predicted costs the project
went ahead. T he narrow nature of the
technical and economic analyses undertak-
en does not necessarily mean that public
authorities that chose dams as a develop-
ment option were unaware of the social and
environmental costs Rather, within the
context of knowledge available and the
value system of those making decisions at
any given time, the sacrifices were judged to
be worth the benefits of pushing ahead with
the project. T his approach to decision-
making continues largely intact today
T he emergence of equity as a critical ingre-
dient of development underlines that this
'balance sheet' approach is unacceptable as
it ignores the typical mismatch between the
distribution of the gains and losses of a
project across different societal groups Large
dams can be seen as an extreme example of
this dilemma, as public resources - both
monies and rivers - are devoted to projects
that all too often result in inequitable
distribution of costs and benefits
This section shows that large dams in the
WCD Knowledge Base tend to produce
benefits that accrue to groups other than
those who bear the social and environmen-
tal costs T hose who bear the costs are quite
often poor, vulnerable (such as indigenous
This section uses the benefits and costs of
the large dams in the WCD Case Studies to
illustrate and examine these issues First, it
presents the typical approach to balancing
costs and benefits along with an overview of
the benefits generated by the dams in the
120
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
case studies. T hen it discusses the distribu-
tion of project gains and losses to different
groups with the assistance of a review of the
groups adversely affected by the case study
dams. Using this information it draws the
implicationsfor equity and the balance-sheet
approach. The chapter closes with a presenta-
tion of recent initiatives that have addressed
the past legacy of inequity and provided
guidance on mechanisms for benefit sharing.
Benefits, costs and the balance
sheet approach to net benefits
Each W C D C ase Study dam generated a
number of services and benefits for people
(see Table 4.1). T he Kariba dam, for in-
stance, provided inexpensive electricity to
the mining sector and urban areas of Zambia
and Zimbabwe and also contributed to the
economy through tourism, irrigation and
commercial fishing, creating thousands of
jobs, directly or indirectly in these sectors.
Tucurui dam supplies electricity to industry
and to two Brazilian states (Para and M ara-
nhao) that depend almost entirely on it for
their supply (97% and 100%, respectively).
The 84 000 ha of land irrigated by the
A slantas dam has led to substantial im-
provements in the living standards of
Table 4.1 Illustration of the services and benefits generated by large dams in tlie WCD Case Studies
Services and benefits
Socio-economic significance to beneficiaries
Glomma & Laagen Basin
Electricity: 10 145 GW h/yr (1998)
Flood protection
B Electricity benefited 1.3 million basin residents, landowners, and industries; Public revenues from
power installations in G & L area of around $60 million in 1998 of which 80% went to G& L
region.; 2,350 people are permanently employed in the G & L area power sector
■ Flood peaks reduced by 20%
Grand Coulee
Electricity: 24 050 GW h/yr (1995-1998)
Irrigation: 276 700 ha irrigated
Tourism: 3 million visitors/yr
■ Supply to industrial sector, agriculture and urban areas.
■ A bout 1 400 farms; value of production : U S$637 million (1998)
■ Thousands of jobs created to service 44 major tourist facilities and parl<sand recreation areasin
the project area.
Karilia
Electricity: 3 860 GW h/yr (1996)
Tourism: 485 000 visitors/yr
Fishing: 23 250 tons of l<apenta/year from
Kariba Lal<e
Irrigation: 2 700 ha irrigated
■ Supplying mainly the mining sector, urban populations and commercial farmers
■ 20 hotels (about 1,000 beds) established on the reservoir.
■ The fishery benefits mainly commercial kapenta fishing companies
■ 450 permanent and 3,000 casual jobs in irrigation schemes
T arliela
Irrigation: 9% of total annual water supplies
(22 % in dry season) for the 18 million
hectares of the Indus system
Electricity: 15 100 G W h/yr (1998)
Tarbela employment
■ Benefiting millions of holders of irrigated land and associated workers
■ Provides 28% of Pakistan' s annual power generation from the inter-connected national grid
system
■ 4 000 permanent jobs in the project; secondary employment in agro-industry and irrigation
G ariep and V anderK loof
Irrigated area: 138 000-164 000 hectares™
Electricity: 660 GWh/yr (avg 1971 to 1998)
Water Supply: 151 M m^^r
TourisTt 200 000viator^yr
■ 40 000 job units created or saved (regular and seasonal labour combined)
■ Supply to national grid
■ Supply to industrial sector and cities through inter-basin transfers
■ 200 people employed in 18 recreational facilities identified (with at least 1 000 beds)
A slantas
Irrigated area: 84 000 hectare^"
Electricity 650 GWh/yr (avg 1995-99)
■ Over 11 000 farm families or 80 000 people (but decrease in total farm labour force); Gross value
of production $160 million. Supports about 100 agro-industrial units
■ M unicipalities and industries in the basin
Tucurui
Electricity: 20 000 to 23 000 G W h/yr (1995-
1998)
Reservoir Fisheries: 3 200 tons/yr
■ A luminum industry consumes over half of the electricity. 8 million people supplied with
electricity in northern Brazil
■ Commercial and subsistence fisheries
Pak Mun
Electricity: 290 G W h/yr (avg 1995-99)
Tourism (existed pre-project)
■ Supply to N ortheast region of Thailand
■ 140,000 visitors in Keng Saphue in 1999 (less than pre-project)
Source: WCD C ase Studies-
The Report of the World Commission on Dams
121
Chapter 4
thousands of farmers, while
the electricity supplied by the
dam has benefited municipali-
ties and industries in the basin.
Grand Coulee dam in the
United States irrigates more
than 276 700 ha, generates
24 050 GWh per year, and
together with Lake Roosevelt
and the Columbia Basin
irrigation project is the basis
for a flourishing tourism sector with 3 million
visitors annually Tarbela dam generates
28% of Pakistan's electricity In addition,
the dam provides over one- fifth of the water
in the dry season for the massive Indus Basin
irrigation system. G ariep and Vanderkloof
dams in South A frica irrigate more than
160 000 ha in the most arid provinces of the
country and, despite the fact that they were
built during the Apartheid era, they created
(or saved) jobs that mostly went to then-
marginalised groups. Through inter-basin
transfers, the Orange River Development
Project dams have also supplied fresh water
to distant cities and industrial areas.
In many cases the exact number of benefici-
aries is not known, particularly where the
water or power is connected to a common
transmission or distribution system. Still, it is
possible to roughly approximate these num-
bers, for example, the hydropower dams in the
G lomma and Laagen system supply electricity
to 1.3 million people living in the basin.
These benefits need to be viewed in the
context of the costs implied, especially the
economic, social and environmental costs
documented earlier in this chapter For
example, in the case of Tucurui the economic
costs and benefits of power production must be
balanced against a series of social and environ-
mental impacts, including those already
referred to in this chapter and C hapter 3:
■ loss of 285 000 hectares of tropical forest
and associated populations and species of
wildlife;
■ the suffering of communities subject to
forced displacement and the plague of
M ansonia mosquitoes;
■ the risk of mercury poisoning;
■ thelossof downstream fisheries and
agricultural productivity; and
■ the physical and livelihood displacement
of the Parakana, G avio da M ontanha,
and A surini peoples.
Furthermore, there is no agreement on
whether the net greenhouse gas emissions
from the reservoir, spillway, and turbines are
offset by the saving in emissions from fossil
fuel sources made possible by the large
amount of power produced by Tucurui .
C learly in the case of large dams that
produce a multitude of benefits and costs,
the application of a balance-sheet approach
is not easy to do in a comprehensive fash-
ion. I n many cases the benefits and costs
(especially social and environmental costs)
are not of the same currency and cannot be
explicitly weighed against each other.
The Commission asked participants in the
final W C D C ase Study stakeholder meet-
ings for their views on the overall develop-
ment impacts of the W C D C ase Study
dams. Some stakeholders were able - in
their own minds - to sum up the positive
and negative aspects of a project. Others
rejected the questions as too simplistic an
approach to a very complex, multi-dimen-
sional problem. The G lobal Review itself
demonstrates that poor accounting in
economic terms for the social and environ-
mental costs and benefits of large dams
implies that the true economic efficiency
and profitability of these schemes remains
122
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
largely unknown. In addition, as covered in
more detail in Chapter 6, even efforts to
extend traditional cost-benefit analysis to
cover this task have failed to accommodate
the myriad impacts and concerns that arise.
Who gained and who lost?
0 ne of the drawbacks of the approach taken
above is that it reduces the benefits and
costs of large dams to abstract flows (or
numbers), and hides the impacts that have
had very real consequences for people and
ecosystems. A n analysis of the distribution
of costs and benefits - that is who gained
and who lost - provides another method of
assessing costs and benefits of large dam
projects.
Re-distribution of access to
resources
T he construction of a dam requires an
investment of human-made capital and, as a
result, generates a series of new entitlements
that are then distributed - either through
political-administrative means or through
markets - to members of society A t the
same time, the construction of a large dam
will have profound effects on the natural
and social landscape of the setting in which
the dam is located. These changes will affect
the legal, customary or de facto entitle-
ments to natural resources, environmental
quality and socio-cultural integrity experi-
enced by local communities and others
holding rights to the resources in the area.
Dams are unique among large infrastructure
projects in the scope and manner in which
they affect the pattern of access to resources,
and their distribution across space, time, and
societal groups:
dams take a set of resources - a river
and the lands along its banks, generating
food and livelihood for local people; and
transform them into another set of
resources - a reservoir, hydro power and
irrigation, providing benefits to people
living elsewhere. T here is a sense,
therefore in which large dams export
rivers and lands, removing them from
the productive domain of one community
to make them available to another.
G rand C oulee provides a vivid example.
N ative A mericans were physically dis-
placed by a project that provided power to
industry and households in a city
some 250 km away Furthermore,
the water and land that had
previously supported their
livelihoods (particularly the
salmon fishery) was dammed
and diverted to provide white
settlers with irrigated farmland
I n other cases, the resources as
transformed simply continued to
benefit those who previously had
access to them. T he Tarbela dam
illustrates this: in addition to
securing existing water supply the expan-
sion of the cropped area by 39% and the
increase in the cropping intensity have
primarily benefited those owning land prior
to the construction of the dam.
In the cases listed the distribution of project
benefits was explicit. In other cases, however,
particularly where ancillary benefits are
concerned, the redistribution of resources
and benefits happens in a haphazard fash-
ion. The illustration provided earlier of the
increase in fisheries in theTucurui reservoir
is an example. In this case, those living near
the reservoir have benefited while those
living downstream from the dam have seen
their fisheries decrease substantially. Simi-
larly the India Case Study noted that in
many irrigation dams, people lose access to
Poor accounting in
economic terms for the
social and environmental
costs and benefits of
large dams implies that
the true economic
efficiency and
profitability of these
schemes remains largely
unknown.
The Report of the World Commission on Dams
123
Chapter 4
effects on the environment will likewise
have many lasting and even irreversible
environmental impacts.
Profile of adversely affected groups
T he W C D C ase Studies show that the
direct adverse impacts of dams have fallen
disproportionately on rural dwellers, subsist-
ence farmers, indigenous peoples, ethnic
minorities, and women (seeTable 4.2).
T hese groups, who are also often the poorest
segments of society tend to be over-repre-
sented in the numbers of people who are
displaced from reservoirs sites or lose access
to their traditional livelihoods. W ithin the
displaced, compensation programmes tend
to ignore livelihood impacts on landless
groups and women. In downstream areas.
Table 4.2 Profile of groups adversely affected by large dams: illustrations from WCD Case Studies
D am project
D isplaced people
Profile of displaced people
Others adversely affected
Glomma and Laagen
1945-70
N one displaced.
N one documented in case study.
Grand Coulee
1934-75
5 000 to 6 500
people.
1 300 to 2 000 from Colville and Spol<ane tribes
not compensated until 1990s; rest are settlers.
Several thousand members of First N ation groups
(Colville, Spokane, N ez Perce and Canadian
tribes) located throughout the upstream basin,
due to flooding of fishing falls and blockage of
salmon.
Kariba
1955-59
57 000 people.
Tonga subsistence farmers; ethnic minority in
Zimbabwe; most were resettled in resource-
depleted areas.
Thousands of downstream people lost floodplain
livelihoods and lakeside inhabitants experienced
increased prevalence of schistosomiasis.
T arbela
1968-76
96 000 people.
Composed of 93% farmers; 5% artisans or semi-
skilled workers; and 2% boatmen.
Pastoralists, landless people, low cast groups of
fisherfolk, boatmen, basket makers, and weavers
suffered from loss of wetlands, forests, and
grazing.
G ariep and
V anderkloof
1963 to late 1970s
1 380 people:
families of 40 white
farmers and 180
black farm worl<ers
M ost white farmers felt they were fairly
compensated. Black farm-workers were not
eligible for compensation and eventually moved
to other farms and urban areas.
Farmers living along the river, where 1 million
sheep suffered from proliferation of biting
blackfly leading to livestock losses.
A slantas
1975-85
1 000 families.
M ostly former immigrants from Eastern European
countries; composed of small and medium-size
landowners and landless families.
N one documented in case study, although it is
claimed that customary users of forests that were
not recognised were the most adversely affected.
Tucurui
1975-85
25-35 000 people
plus
indigenous peoples.
Subsistence farmers, fisherfolk, pastoralists, and
riverbank cultivators (126 of 2 247 disputes are
not yet settled.)
100 000 people (subsistence farmers, pastoralists,
fisherfolk, and other natural-resources-dependent
communities) affected by reduced water quality,
loss of riverbed cultivation, and decreased
downstream fish populations.
Pak Mun
1991-94
1 700 families.
Rural families dependent on rice farming and
fisheries income; cash compensation failed to
provide livelihood regeneration.
M ore than 6 000 families of subsistence farmers
and fisherfolk suffered loss of livelihood from
fisheries reduction.
Source: WCD Case Studies
The WCD Case Studies
show that the direct
adverse impacts of
dams have fallen
disproportionately on
rural dwellers,
subsistence farmers,
indigenous peoples,
ethnic minorities, and
women.
their forest and highly preserved
natural resources along the river to
give way for a dam that irrigates
land for downstream people who
have often overexploited their
local natural resources. T hese
examples show that even if no
intentional redistribution is made,
a dam can effectively take a
resource from one group and
allocate it to another.
Finally, the impacts of large dams
on ecosystems and biodiversity have conse-
quences for future generations. Dams are
long-lived assets and thus are designed to
provide benefits beyond the medium term.
T he decision to dam a river and the ensuing
124
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
communities suffering from altered river
flows are mainly subsistence farmers whose
livelihoods are largely based on the exploi-
tation of resources offered by the natural
flow of the river (fisheries, floodplain
farmlands and pastures).
Finally to the extent that burgeoning popula-
tions are at once evermore reliant on a
degraded natural resource base and demand
more en vi ronmental qual ity ( as i ncomes ri se) ,
future generations are also likely to be
among the adversely affected. W here the
performance of large dams in economic terms
falls short, future generations may also bear a
disproportionate share of the costs without a
commensurate share of the benefits.
Profile of beneficiaries
As noted earlier, dams have benefited the
general public through their contribution to
food production and increased access to
electricity along with providing other direct
benefits and multiplier effects. The preced-
ing sections of this chapter have also includ-
ed some specific examples of how the direct
and indirect benefits of large dams have
been shared with the poor, such as through
the provision of water supply electricity,
employment on construction sites and jobs
in dam-based irrigation, industrial and
tourism industries.
Examination of the C ase Study dams
confirms that those who receive the bene-
fits, usually urban dwellers, commercial
farmers and industries, are typically not the
same groups that bear the social costs.
I mmigrants generally provide most of the
labour force in construction works (qualified
and non-qualified jobs). They develop and
operate tourism facilities and manage
commercial fishing companies (Kariba).
W hile many small to medium farmers
participate in irrigation schemes (Tarbela,
A slantas, G rand C oulee) such
schemes also benefit large
landowners and those from
privileged groups (0 range
River). Electricity generation has
mostly benefited the industrial
and mining sector (Kariba,
Tucurui) and urban areas (Grand
C oulee, Pak M un) . Flood control
is provided to urban areas
(G rand C oulee as part of the
Columbia River system) as well
as rural areas (G lomma and Laagen). Fresh
water supplied by dams is mainly directed to
the industrial sector and urban areas.
Equity
T he C ase Study dams demonstrate a lack of
connection between groups benefiting from
dam projects and those adversely affected,
confirming the general finding from the
Knowledge Base. A ssessment of these
distributional impacts of a dam does not in
and of itself provide a value system to
prescribe what should be done in judging
projects and confronting the distributional
issues raised. Judging the social and moral
acceptability or fairness of the patterns of
distribution of positive and negative impacts
is an equity issue. T he debate on the social
impacts of dams is thus about the equity
dimension - whether the distribution of
costs and benefits isjudged to be fair or just.
A strong equity constraint dictates that
there be no losers, that those who bear the
costs from large dams should receive a
proportionate amount of benefits. H owever,
equity often speaks more to the costs of
dams than to their benefits, directing
attention to those who are most at risk. This
speaks to the vulnerabilities of isolated, less
powerful populations for whom 'develop-
ment' can all too easily mean loss. Put
simply a large dam that renders the poor
and the vulnerable worse off is inequitable.
The Report of the World Commission on Dams
125
Chapter 4
l/l/here costs and benefits
accrue to different
groups, the standard
procedures for adding up
and discounting the
expected costs and
benefits do not provide
an appropriate measure
of clianges in societal
welfare.
Implications for the balance-sheet
approach
That large dams in the Knowledge Base
have led to inequitable outcomes challenges
the assumptions that underpin the 'balance
sheet' approach and hence the idea that
simply 'adding' up the costs, benefits, and
impacts of large dams will lead - all things
considered - to the best choice for society.
I ndeed, there are significant moral and
ethical concerns that such a balance-sheet
exercise does not address. It is implicitly
based on the assumption
that if the overall balance of
impacts is positive, then
those who gain would share
the benefits with those who
lose out. Thus, all would be
better off in the end. H ow-
even examination of the
distribution of gains and
losses in the case studies
demonstrates that such
benefit sharing has seldom
occurred. T hose who bear
the social and environmental costs and risks
of large dams are frequently not the same
people who receive the social and economic
benefitsof the water electricity and ancil-
lary services that dams produce.
T he importance of the distribution analysis
of impacts and the concept of equity to
decision-making can be understood as
follows. If the loss of access to previous
sources of livelihood isoffset by access to
new benefits made available by the dam,
former resource owners and users can have
different but better living conditions than
before. If loss of ecosystem function results
from large dam projects the resulting costs
may be included on the balance sheet. In
other words, adverse social and environmen-
tal impacts of large dams do not, by them-
selves, invalidate the balance-sheet ap-
proach. Rather the crucial distinction isthe
failure to balance the loss of entitlements
that some groups experience with a corre-
sponding gain in new entitlements.
T he lack of validity of the balance-sheet
approach in such a situation is confirmed by
economic theory W here costs and benefits
accrue to different groups, the standard
procedures for adding up and discounting the
expected costs and benefits do not provide an
appropriate measure of changes in societal
welfare."^ I n order to apply the balance sheet
approach equitably, the costs to affected
groups need to be mi ni mised and an equita-
ble share of benefits ensured. With regardto
the environment and intergenerational equity
this i mpl iesthe need to ensure that eco^em
needs are mdt i n the pre^nt so that future
generati ons can have acces to a non-decl i n-
i ng i ncome stream to which natural capital
makes an i mportant contri buti on "
Initiatives for the equitable
distribution of costs and
benefits
T he maj or equi ty i ssues ari si ng from the
discussion of the distributional impacts of
I arge dams i s the i mpoveri sh ment of thos
who pre/iously i n habited the resen/oi r site
and those who derived thei r I i vd i hood from
the resDurce base that i s transformed by dam
construction and operation. T here is i nj us-
ti ce when the ri ^ts of physi cal I y di spl aced
peopi e are vi ol ated, i ncl udi ng when they
I OS their land and access to the river and
when downstream people experience
reduced acces to f I oodpl ai ns and f i sheri es
but are excl uded from access to proj ect
benefits Societiesare increasingly rejecting
these outcomes and search i ng for more
equitable S3luti ons
126
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
C hapter 3 has already covered the measures
that are available to avoid, minimise or
reduce the ecosystem impacts of large dams.
T hese are likely to be an important compo-
nent of efforts to resolve intergenerational
issues or social inequities that are linked to
ecosystem impacts. This final section of the
chapter describes some recent initiatives to
explicitly confront past social inequities
through reparations or to ensure that new
projects deal with equity issues in a proac-
tive manner through benefit sharing.
Progressive national legislation and
policies
A dopting a benefit-sharing approach
requires that the project design and plan-
ning process con si der such mech an i sms from
the outset. Prog'esave national legisla-
tion and policies provide the legal frame-
work and standardise benefit sharing thus
havi ng a far broader i mpact than project
le/d approaches This approach has been
wi del y i mpl emented i n the energy sector
where proj ect proponents al I ocate a per-
centage of the electricity sales re/enue to
resettlersand local administrative units'"
Examples i ncl ude, the Lubuge, Yantan,
Shuikou and Ertan Hydroelectric projectsin
China, the Rio Grande Hydroelectric
Project in Colombia, asv\ell assB/eral
projectsin Brazil (see Box 4.7). Other
mechani sms for benefit shari ng i ncl ude the
supplyof energy at preferential rates (as
requi red i n N orway) and payment of proper-
ty or local government taxes (as requi red i n
France and Norv\ay) which are assigned to
affected areas'"
Japan's Act on Special Measures for Reser-
voi r A rea De/d opment provi des vari ous
measures for peopi e who are affected by a
dam proj ect and for the de/d opment of
areas around the dantreservoin" The Act
provi des for a combi nati on of measures
i ncl udi ng compensation for property and other
lo^ i mprovement of the I ivi ng conditions
and industrial bas of the affected area, and
measures for reeling peoplethrou^ the
Fund for Reservoi r A rea De/d opment. T he
beneficiary municipalities affected munici-
palities and central government contribute
to this Fund, which fi nances devd opment
i n the reservoi r area. T he Fund al so pro-
motes sol i dari ty between the downstream
benefi ci ari es and the di spl aced peopI e." '
Inthe Senegal River valley, state-led
distribution of irrigated land gave lower
caste groups access to I and ownersh i p,
pre/iously denied to them under traditional
tenure ^ems'^' The India Case Study
provi des exampi es of agri cul ture and home-
stead I and bd ng provi ded e/en to thos who
v\ere I andl ess as part of resetti ement process-
es Insomecass pre/iously marginalised
farmers v\ere given more I and than they had
originally
A comparison ofaccesstodectri city in
Zi mbabv\e and South A f ri ca documents the
Box 4.7 Royalties to communities: a Brazilian law for hydropower
benefit-sharing
n Brazil, Law No. 7990, dated 28 December 1989, requires that royalties be paid
to the federal government for using waterforpowergeneration purposes. The
royalties paid by each power plant generating more than 10 M W represent 6%
of the value of the power produced. The royalties are distnbuted as follows: 10%
to the federal government, 45% to the statels) where the venture is located and
45% to the municipal districts affected by the venture. The total amount paid
out by the Tucurui dam in 1996 reached $19 million, with the total royalties for
1991 through 1996 topping $103 million. The Itaipu dam, in the south of Brazil,
pays annually about $13 million in royalties. The royalties are among the leading
sources of income forsome of the municipal districts.
However, royalties by themselves will not address social injustice, as the way
they are used to benefit local government units depends on broader political
and social factors. In some cases the allocation of these resources Is done in a
non-transparent way In others, results are visible. A municipality like Itaipulandia
has paved all the roads in the city and provides agncultural supplies to the
population. In addition, local young residents are funded to study at Brazilian
universities on the condition that they return to the community for five years.
Source: WCD Tucurui Case Study: Itaipu dam in Ferradas,
1999, WCD Contnbuting PaperforThematic Review 1.1 Social Impacts
The Report of the World Commission on Dams
127
Chapter 4
The inequitable
distribution noted in the
past in sliaring rislcs and
allocating benefits is not
inevitable.
importance of proactive govern-
ment policy and investment in
confronting existing inequities
in tlie electricity sector as a
vjUo\e.™ A I most 40 years after
commi si oni ng the Kari ba dam,
only about one-fifth of Zi mba-
bv\ean housholds (mainly located in urban
areas) have access to electricity Prohibitive
pov\er pri ci ng pol i ci es adopted by the
government conti nue to excl ude poor
people from this service. In contrast, as a
result of del i berate pol icy on the part of the
post-Apartheid government in South
Africa, the percentage of housholds there
havi ng access to electricity i ncreased from
20 to 50% in the 1990s
Project level benefit-sharing
mechanisms
Some project proponents also initiate
benefit-sharing agreements with concerned
communities where national or local regula-
tory frameworks do not exist. A wide variety
of mechanisms are developed, ranging from
making affected communities primary
beneficiaries of the project services - for
example irrigation, electricity water supply
fishing rights - to formal business agree-
ments concerning equity and revenue
sharing in the project itself. Several dam
projects in the W CD Knowledge Base
shared direct project benefits with resettlers
by moving displaced people into the newly
irrigated areas, for example A ndhra Pradesh
II and III, Brazil Ceara Water Resources,
C hina's Daguangba M ultipurpose project.
I n the case of H ydro-Q uebec i n C anada, the
Provi ncial power uti I ity proposed partner-
shi p agreements to I ocal communiti es for al I
new hydropower pro] ects' ^ ^
Reparations
T here are an i ncreasi ng number of exarrpl es
of reparati ons bei ng made for past i nequi -
ties'" In North America, the processof
payi ng reparati on to N ati ve A meri cans for
dan> induced impacts has started. The
Grand Coulee Case Study relates that in
1994 the U ni ted States C ongress uphd d the
cl ai ms for damages and reparati on made i n
1951 by C ol vi 1 1 e C onfederated Tri bes who
had lost homes lands and salmon runs to
the G rand C oul ee Dam i n the C ol ombi a
basi n i n the 1940s A total of $54 mi 1 1 ion
was pal d i n reparati ons i n addi ti on to an
annual paymentof $15 million as long as
the dam conti n ues to produce el ectri ci ty. A
$200-million Misaouri River Trust fund
proposed throu^ legislation in early 2 000
ai ms to move A meri can I ndi an Tri bes cl oser
to compensation for land lost to federal
dams'"
A few precedents are emerg ng on repara-
ti ons i n de/d opi ng countri es as wel I .
A pproval of a World Bank loan for the
Ghazi Barotha hydro project in Pakistan in
December 1995 was made conditional on a
process for the resol uti on of di sputes over
compensati on for peopi e di spl aced 20 years
before by the Tarbd a dam. An initiative has
begun i n Zambi a to rai se the I i vi ng stand-
ards of communities sufferi ng the conse-
quences of di spl acement by the Kari ba dam
more than four decades ago throu^ the
Gwembe Tonga Rehabilitation and De/d-
opment Prog'amme. I n a negotiated settle-
ment resulting from prolonged agitation,
more than 10 000 fami I i es affected by Barg
project on the N armada River i n I ndia
gained rights to cultivate drawdown lands
f i sh i n the rearvoi r and manage forests i n
the catchment area j oi ntl y ' "
C h i na attempted to ^emati cal I y address
the probi ems faced by the reservoi r- resetti ed
people beg nning with new policy and
institutional initiativesin theearly 1980s
I n 1986, the M i nistry of Water Resources
128
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
and Electric Power launched a large rehabil-
itation programme aimed at improving
living conditions of some 5 million reser-
voir-resettled people across 46 resettlement
areas in the country. ™ Although such
measures have had a sigiificant i mpact, a
1994 World Bank report cited the C hi nese
government as sayi ng that some 46% of the
country's rearvoi r resettlers 'v\aie at great
risk."''
A n appropri ate I egal and pol i cy envi ron-
ment, accompanied by clear political will to
act, can therefore ensure that poor and
vul nerabi e groups margi nal i sed i n the past
by I arge dam proj ects can beg n to share i n
the benefits generated by such projects This
means that the i nequi tabi e di stri buti on
noted i n the past i n shari ng ri sks and
al I ocati ng benefi ts i s not i ne/i tabI e. I ndeed,
as di scussed i n C hapter 6, there are a
number of explanations for past fai I ures i n
performance - explanations that lead to a
seri es of recommendati ons for maki ng the
transition to more equitable outcomes
Findings and Lessons
Past decision-making and planning efforts
have often neither adequately assessed nor
accounted for the adverse social impacts of
large dams. Asa result, the construction and
operation of large dams has had serious and
lasting effects on the lives, livelihoods and
health of affected communities, and led to
the loss of cultural resources and heritage.
A t the same time a simple accounting for
the direct benefits provided by large dams -
the provision of irrigation water, electricity
municipal and industrial water supply and
flood control - often fails to capture the full
set of social benefits associated with these
services. It also misses a set of ancillary
benefits and indirect economic (or multipli-
er) benefits of dam projects.
TheWCD Knowledge Base pro-
vides the following findings on the
adverse impacts of the displacement
of people from their homes and
livelihood by large dams:
■ 40-80 million people were
physically displaced by dams
worldwide;
■ millionsof peoplelivingdown-
stream from dams - particularly
those reliant on natural flood-
plain function and fisheries -
have also suffered serious harm
to their livelihoods and had the
future productivity of their
resources put at risk;
■ many of the displaced were not
recognised (or enumerated) as such,
and therefore were not resettled or
compensated;
■ where compensation was provided it
often proved inadequate and where the
physically displaced were enumerated
many were not included in resettlement
programmes;
■ those who were resettled have rarely had
their livelihoods restored, as resettlement
programmes have focused on physical
relocation rather than on the economic
and social development of the displaced;
■ even in the 1990s, impacts on down-
stream livelihoods were not adequately
assessed or accounted for in the planning
and design of large dams; and
■ there is a clear relationship between the
magnitude of displacement and the
ability to rehabilitate and restore liveli-
hoods adequately - the larger the number
of displaced people, the less likely it is
that livelihoods can be restored.
In sum, the W CD Knowledge Base demon-
strates a generalised lack of commitment or
The Report of the World Commission on Dams
129
Chapter 4
lack of capacity to cope with displacement.
Large dams in the WCD Knowledge Base
have also had significant adverse effects on
cultural heritage through the loss of cultural
resources of local communities and the
submergence and degradation of plant and
animal remains, burial sites and archaeological
monuments.
The W C D Knowledge Base indicates that
the poor, other vulnerable groups and future
generations are likely to bear a dispropor-
tionate share of the social and environmen-
tal costs of large dam projects without
gaining a commensurate share of the eco-
nomic benefits. Specific cases include:
■ Indigenous and tribal peoples and
vulnerable ethnic minorities have
suffered disproportionate levels of displace-
ment and negative impacts on livelihood,
culture and spiritual existence;
■ affected populations living near reser-
voirs, displaced people and downstream
communities have often faced adverse
health and livelihood outcomes from
environmental change and social disrup-
tion; and
■ among affected communities gender gaps
have widened and women have frequent-
ly borne a disproportionate share of the
social costs and were often discriminated
against in the sharing of benefits.
T hese inequitable outcomes documented in
the W C D Knowledge Base invalidate the
prevailing 'balance-sheet' approach to
decision-making. The balancing of gains
and losses as a way of j udgi ng the merits of a
large dam project - or selecting the best
option - is not acceptable where the mismatch
between who gain from the benefits and those
who pay the costs is of such a serious, perva-
sive, and sometimes irreversible nature.
The review also shows that the true eco-
nomic profitability of large dam projects
remains elusive as the environmental and
social costs of large dams were poorly
accounted for in economic terms. M ore to
the point, failures to account adequately for
these impacts and to fulfil commitments
that were made have led to the impoverish-
ment and suffering of millions, giving rise to
growing opposition to dams by affected
communities worldwide. I nnovative exam-
ples of processes for making reparations and
sharing project benefits are emerging that
provide the basis for optimism that past
injustices can be remedied and future ones
avoided.
130
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
Endnotes
1 Lang etal, 2000 eco041,W CD Submission.
2 M einzen -Dick, 1997, p50.
3 UNDP, 1999, p213, 214.
4 Saxena, perscomm, 2000; UNDP, 1998,
pl75, 177.
5 These figures relate only to areas along the
Orange River downstream of the G ariep and
Vanderkloof dams, and do not include
irrigated areas along the Fish and Sundays
rivers, which received water, diverted from
the Orange River by ORDP as well.
6 Panama Canal Officeof Public Affairs,
undated.
7 A DB, 1999b, pi.
8 Jing, 1999, W CD Contributing Paper to
Thematic Review 1.3 Displacement.
9 Fernandesand Paranjpye, 1997, pl7.
10 World Bank, 1996a, p90-92.
11 Cook, 1994, p25.
12 OED, 1993, pll.
13 World Bank, 1996a, p88.
14 W CD Thematic Review 1.2 Indigenous
People, section 2.1.7.
15 W CD Thematic Review 1.2 Indigenous
People, section 2.1.11.
16 M orse and Berger, 1992; Parasuraman, 1999,
p83.
17 Correa, 1999, W CD Regional Consultation
Paper.
18 Dhom dam in Parasuraman, 1999, pl54;
Bargi dam in M ander et al, 1999, Contribut-
ing Paper for W CD Thematic Review 1.3
Displacement, p64.
19 Bartolome and Danklmaier, 1999, Contribut-
ing Paper for W CD Thematic Review 1.3
Displacem ent.
20 Balsalm, 1940a, and 1940b.
21 W CD Grand Coulee CaseStudy
22 W CD Thematic Review 1.3 Displacement,
section 3.1.
23 W CD Thematic Review 1.3 Displacement,
section 5.
24 Colson, 1971, cited in DeWet, 1999, W CD
Contributing Paper forThematic Review 1.3
Displacement, p9.
25 Fact Finding Committee on theSri Sailam
Project, 1986, cited in M ander et al, op cit,
plO.
26 Stewart et al, 1996; World Bank, 1996b;
Chen, 1999, W CD Regional Consultation
Paper; Colajacomo, 1999, Contributing
Paper for W CD Thematic Review 1.2
Indigenous People.
27 W CD Thematic Review 1.2 Indigenous
People, section 2.1.9.
28 M ander et al, op cit, p6.
29 W CD Thematic Review 1.3 Displacement,
section 3.2; Bartolome and Danklmaier, op cit.
30 Kiambere dam in M burugu, 1994, p53. Note
that in Turkey farmers are asked to register
the value of their land for tax purposes.
Farmers that record a lower value than the
real asset value in order to avoid tax will
have difficulty in purchasing equivalent land
el sewh ere as th e govern m en t uses th ese
declarations as the basis for calculating land
compensation amounts.
31 Fact Finding Commission on Sri Sailam
Project, 1986, cited in M ander et al, op cit;
Kao Laem dam in W CD Thematic Review
1.2 Indigenous People.
32 A swan H igh dam in Fahim, 1981, and
Fernea, 1998, cited in De Wet, op cit, pll;
N angbeto and A kosombo in De Wet, op cit,
pll;ltain Bermann, 1999, W CD Regional
Consultation Paper; Bhumibol in Sluiter,
1992, p62.
33 Jing, op cit, pll.
34 H oa Binh dam in Srettachau et al, 2000,
W CD Regional Consultation Paper; Sirind-
horn dam in Sluiter, op cit, pvii; Batang A i
dam in ADB, 1999a, p5.
35 M iguel A leman and Cerro de Orro dams in
Nahmad, 1999, W CD Regional Consultation
Paper; Panama in H uertasand Pacheco,
1999, W CD Regional Consultation Paper;
Brazil in W CD Tucurui Case Study; Zambia
and Zimbabwe in W CD Kariba Case Study
36 Sluiter, op cit, p62.
37 Sluiter, op cit, p63.
38 Jing, op cit, p7.
39 Cernea, 2000; WCD Thematic Review 1.3
Displacement, section 1.3.
The Report of the World Commission on Dams
131
Chapter 4
40 World Bank, 1994, p2-3;Jing, op cit, p5.
41 Cernea, 2000, p2.
42 0 ED, 1996b, p86.
43 W CD Thematic Review 1.2 Indigenous
People, section 2.1.10.
44 Jing, op cit, p35.
45 Supreme Court of India, 1999.
46 ADB, 1999b, p20-21.
47 DeWet, op cit, pl8.
48 Robinson, 1999, ContributingPaperforWCD
Thematic Review 1.3 Displacement, p4.
49 Driver, 2000, Submission to W CD Thematic
Review 1.3 Web Conference.
50 Jing, op cit, pl8-19.
51 Bermann, op cit.
52 DeWet, 1999, op cit, p21.
53 World Bank, 1993, pl8.
54 W CD Thematic Review 1.2 Indigenous
People; W CD Grand Coulee Case Study,
A nnex 9; W CD Tucurui Case Study.
55 W CD Thematic Review 1.3 Displacement.
56 W CD Thematic Review 1.2 Indigenous
People, section 2.1.1.
57 W CD Thematic Review 1.2 Indigenous
People.
58 W CD Thematic Review 1.2 Indigenous
People, section 2.1.6.
59 Silva Orrego, 1997, pl59; Opaso, 1999,
WCD Regional Consultation Paper.
60 Gapuzand Shalupirip, 2000, WCD Regional
Consultation Paper.
61 WCD Thematic Review 1.2 Indigenous
People, section 2.1.1.
62 WCD Thematic Review 1.2 Indigenous
People, section 2.1.6.
63 H uertas and Pacheco, op cit.
64 WCD Thematic Review 1.2 Indigenous
People, section 2.1.5.
65 Soong, 2000, WCD Regional Consultation
Paper.
66 WCD Thematic Review 1.2 Indigenous
People, section 2.1.5.
67 WCD Thematic Review 1.2 Indigenous
People, section 1.1.4.
68 In Canada it isthe Constitutional Law of
1982; in the Philippines it isthe Constitu-
tion of 1987; in India it isthe fifth and sixth
schedules under the Indian constitution; in
Brazil it istheArticle231& 232 of the 1988
constitution. N ational laws reflect contem-
porary indigenous rights norms, in Chile,
Ecuador, Bolivia, Colombia, and A rgentina.
69 Adams, 1985, cited in WCD Thematic
Review 1.1 Social Impacts.
70 WCD Thematic Review 1.1 Social Impacts.
71 Horowitzet al, 1994.
72 Ferradas, 1999, ContributingPaperforWCD
Thematic Review 1.1 Social Impacts.
73 WCD Thematic Review 1.2 Indigenous
People, section 2.1.11.
74 Urral dam in Correa, 1999, WCD Regional
Consultation Paper; Pak M un dam in W CD
Pak M un Case Study; Other dams in ADB,
1999a, p23-24.
75 M ehta and Srinivasan, 1999, Contributing
Paper for WCD Thematic Review 1.1 Social
Impacts.
76 OED,1998.
77 Projects included in the studies are: Batang
A i in M alaysia. Sing Karak in Indonesia,
Lingjintan in China and Theun-H inbon in
LaoPDR.ADB, 1999a.
78 A garwal, 1996, cited in M ehta and Srinivas-
an, op cit.
79 While most adivasi communities in the
N armada Valley are classified as 'encroach-
ers', they had usufructory rights and control
over land. M ehta and Srinivasan, op cit
80 Colson, 1999, cited in M ehta and Srinivas-
an, op. cit.
81 A nane, 1999 SOC210, WCD Submission.
82 M ehta and Srinivasan, op cit.
83 Colson, 1999, cited in M ehta and Srinivas-
an, op cit, p. 12.
84 M ehta and Srinivasan, op cit, p22.
85 Gender compares men and women. W here
both benefit, but men benefit more than
women, the gender impact can be negative
because the benefit/sin question can result
in wider gender gaps.
86 Tamakloe, 1994.
87 van Koppen, 1999.
88 Niasse, 1997.
132
Dams and Development: A New Framework for Decision-Making
People and Large Dams - Social Performance
89 BrandtandHassan,2000,W CD Working
Paper on Cultural H eritage M anagement.
90 Gwala, 2000.
91 Kinahan, 2000, in Brandt and H assan, op cit,
pl8.
92 N orr et al, 2000, in Brandt and H assan, op
cit, p35-36.
93 Ota, 2000, in Brandt and Hassan, op cit, p52.
94 Faught, 2000, in Brandt and H assan, op cit,
pll.
95 Brandt and Hassan, op cit, p59.
96 Politisand Endere, 2000 in Brandt and
H assan, op cit.
97 Childs-Johnson, 2000, in Brandt and H assan,
op cit.
98 WHO, 1999, W CD Working Paper on
H uman H ealth, p6.
99 Kariba dam in H ira, 1969, and Mungomba
et al, 1993; A kosombo and A swan dams in
Jobin, 1999, p278, 298-300.
100 Jobin, op cit, p300-303, 327-330, 425-427.
101 World Bank, 1999b, p2.
102 WHO, op cit, p21.
103 Government of India, 2000, in WCD India
Country Study.
104 WHO,opcit, pl9.
105 For a treatment of the value of information
in the presence of uncertainty and irreversi-
bility see W CD Thematic lll.l Economic
A nalysis. Chapter 7.
106 China in Jing, op cit, plO; Vietnam in
Sluiter, op cit. pVII; Malaysia in ADB,
1999a, p5, 2000; Thailand in Sretthachau et
al, 2000, WCD Regional Consultation Paper;
India in Laxman, 1999, p208.
107 M acoun et al, 2000.
108 M ncina and Ginidza, 1999.
109 WHO, op cit, pl2.
110 A rea irrigated before dam is included.
111 A rea irrigated before dam is included.
112 Brody Contributing Paper for WCD Thematic
Review 1.1 Social Impacts, section 5.5.
113 A rrow and Lind, 1970; W orld Bank, 1980;
Belli et al, 1998, cited in WCD Thematic
Review lll.l. Economic A nalysis. Chapter 5
and 6.
114 The extent to which other types of capital
can substitute for natural capital is debated.
The degree of substitutability as well as the
degree of irreversibility of ecosystem impacts
will be important determinants of the
optimum balance between leaving a river in
its 'natural' state or going ahead with a dam
(or determining environmental flow require-
ments). W CD Thematic Review lll.l.
Economic A nalysis, C hapter 7.
115 Van W icklin, 1999 socl84, WCD Submis-
sion, p8.
116 Van Wicklin, op cit.
117 Milewskietal,1999, socl96,WCD Submis-
sion and A deler and Flatby perscomm,
2000.
118 Kuriki, pers comm, 2000.
119 Kuriki, op cit.
120 Niasse, 1991, plOl.
121 Bond, 2000 eco033, WCD Submission, p6-7.
122 Van Wicklin, op cit.
123 M ilewski et al, op cit.
124 Reparation isdefined asaction or processes
that repair, make amends, or compensate for
damages. In a legal sense, there are three
generally recognised forms of reparation:
restitution, indemnity (or compensation),
and satisfaction Johnston, 2000, Contribut-
ing Paper for W CD Thematic Review 1.3
Displacement, pl4.
125 Johnston, op cit, p42.
126 Sinha, 1998, soc009, WCD Submission.
127 Jing, op cit, p5.
128 World Bank, 1994, p2-3 cited in Jing, op cit.
The Report of the World Commission on Dams
133
Chapter 5
Options for Water and
Energy Resources Development
Part of the Commission's
mandate was to look at the
alternatives for energy and water
services that were considered in the
past when building large dams and to
consider the current options T his
chapter examines the current state of
l<nowledgeon existing and emerging
options for meeting water and
electricity needs A s part of the
larger discussion of planning and
decision-making processes C hapter
6 critiques the past assessment of
alternatives to large dams
Chapter 5
0 ptions normally emerge in response
to demand or supply. T he choices
available to a society at any given
time also depend on factors such as
natural resource endowments, tech-
nological capability institutional
capacity finance, market conditions,
cultural preferences, awareness and
education. These can act either as
barriers or as enabling conditions,
depending on whether they impede
or promote the consideration and
adoption of a particular option.
C reating conditions for certain
options to emerge as competitive
responses to demand and supply
requires support. Policies, institutions
and regulatory measures can either
help or hinder innovation, moderni-
sation, maintenance, continuation
and sustainability of different options.
T he chapter focuses on identifying the range
or mix of options available today to meet
water and electricity needs in different
societies and in urban and rural settings. It
documents the large range of generic
options currently available. H owever, given
concerns about a number of barriers that
have led to limited assessment of options in
the past, it is not enough simply to identify
the technologies and policies that can satisfy
water and energy needs. It is also necessary
to identify the obstacles that prevent the
more widespread adoption and use of various
options. 0 bstacles may be generic to an
option - such as the high cost of a technolo-
gy - or they may be specific to a particular
context - such as limited wind potential.
Only a thorough and integrated examina-
tion of the options and obstacles can yield a
precise list of alternatives for consideration
in a given regional, country or local context.
T he chapter therefore indicates options that
represent significant opportunities across all
contexts and provides snapshots of opportu-
nities in specific countries, regions or
contexts.
T he investigation of options is organised
around the four 'needs' areas that are the
focus of this report: agriculture, energy
water supply and flood management. Broad-
ly options consist of technological, policy
and institutional responses. T hey may be
categorised further based on whether they
contribute to demand-side management
(DSM ), supply-side efficiency or represent
new supply options. For example, policies
and institutional options to improve man-
agement of existing systems may respond to
supply-side efficiency while a new dam
represents a technological option for new
supply. Previous chapters have presented
and analysed the contribution of large dams
to these services and the performance of
large dams over time. C hapter 5 focuses on
the alternatives, locating large dams in the
larger mix of options.
T his report confirms that selecting the most
appropriate combination of options depends
on giving all the options equal and appropri-
ate consideration in any assessment process.
A ssessment should be based on the respec-
tive merits of available options in the given
context and should include not just a set of
technical, financial, and economic criteria,
but also full integration of social and envi-
ronmental criteria. The options listed below
are not exhaustive and the C ommission
does not endorse particular options. Rather,
theintention isto highlight the options and
issues that should be considered and explored
as part of the options assessment process.
M uch more detailed information on these and
other choices can be found in the W C D
Thematic Reviews on irrigation, electricity
water supply and flood management options
and the related contributing papers.^
136
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
Agriculture and Irrigation
Efforts to promote sustainable water man-
agement practices have necessarily focused
on the agricultural sector as the largest
consumer of freshwater. G overnments have
several objectives in deciding the nature and
extent of inputs in agriculture. T hese
include achieving food security, generating
employment, alleviating poverty and
producing export crops to earn foreign
exchange. Irrigation represents one of the
inputs to enhance livelihoods and achieve
economic objectives in the agricultural
sector with subsequent effects for rural
development.
J ust as strategies and approaches to rural
development are context-specific, there are
numerous and diverse alternatives to agri-
cultural development and irrigation that
need to be examined. The diversity relates
to scale, level of technology, performance,
and appropriateness to the local cultural and
socio-economic setting. Government
policies and institutions play an important
role in the promotion of particular water
appropriation technologies and methods.
Each method has different implications for
food production, food security at local and
national levels, and the distribution of costs
and benefits.
The growth of modern 'conventional'
irrigation since 1900 has been characterised
by large water projects that harnessed rivers
through the construction of diversion
structures and canal systems. Since 1950,
the spread of such technology accelerated
through state- sponsored large-scale irriga-
tion and an emphasis on large dams for
water storage. Irrigated areas increased from
40 million hectares in 1900 to 100 million
hectares by 1950 and to 271 million by
1998.2 Damssupport 30-40% of this area,
wi th the remai nder suppi i ed
from di rect river abstraction,
g'oundvvater and traditional
v\0ter harvesting ^ems^ Since
the 1970s the predominant
focus has been on provi di ng
i rrigation to support the green
re/ol uti on package of hybri d
seeds chemi cal ferti I i sens and
pesticides Conditions for higher
growth v\ere created in such areas through
subsidised infrastructure, agricultural inputs
and electricity for pumping.
I rri gated ag'i culture has contri buted to
growth in agricultural production world-
wide, althou^ inefficient use of water,
i nadequate mai ntenance of physi cal ^ems
and i nstitutional and other problems have
often led to poor performance. Emphasis on
large-scale irrigation facilitated consolida-
tion of land and brought prosperity for
farmers with access to irrigation and mar-
kets C hapter 4 documents the
maj or nxil ti pi i er effects produced
by successful large irrigation
schemes HowB/er, the scale of
support to rai n-fed areas was
limited, e/en though such
^ems supported nx)rethan
80% of farmers i n the devd opi ng
countri es of A si a and A f ri ca. A s
a consequence, there has been a
wi deni ng i ncome gap between
i rri gated and rai n-fed areas Even withi n
large-scale irrigation ^ems inequitiesof
this nature are observed, leadi ng to the
margi nal i sati on of smal I hoi ders
The regonal economic and de/dopment
context for agriculture differs markedly for
i ndustrial and de/dopi ng countries I n the
former, agriculture tends to be capital-
intensive with large, highly mechanised
hoi dings requiring minimal labour. In
Agriculture in Asia and
Africa supports
fiundreds of millions of
smallholder cultivators
who depend on land for
subsistence, livelihood
and food security.
The Report of the World Commission on Dams
137
Chapter 5
There is considerable
scope for entiancing the
viabiiity, adoption and
performance of otfier
sources of irrigation
water such as
groundwater, direct
river abstraction and
traditional water
harvesting systems.
contrast, agriculture in A sia and A frica
supports liundreds of millions of smallholder
cultivators who depend on land for subsist-
ence, livelihood and food security. These
farmers generally do not have access to
support mechanisms or capital resources to
risk growing high-value crops in volatile
market conditions T he low productivity of
the land and labour of many
subsistence cultivators is also
symptomatic of absence of
support and widespread neglect
of their agriculture and irrigation
systems.
T his section presents a brief
overview of some of the options
available for agricultural devel-
opment, with an emphasis on
those most likely to be consid-
ered as alternatives to irrigation,
particularly irrigation supplied by
large dams T he presentation is grouped
according to three levels of options
■ improving performance and productivity
of existing irrigation systems through
improved basin and system-level man-
agement, on-farm technological options
to enhance the productivity of land and
water, and policy and institutional
reforms to improve incentives for water
efficiency and demand management;
■ improving the productivity and liveli-
hood opportunities offered by alternative
supply-side measures through enhancing
rain-fed agriculture, supporting local and
traditional water appropriation tech-
niques and adopting new technological
options such as water recycling; and
■ investing in conventional supply-side
measures to develop new irrigation areas
based on direct abstraction from rivers
and groundwater.
A final option is to import food from other
countries rather than trying to achieve
either a higher degree of food self-sufficien-
cy or security through domestic production.
This may be possible in countries with a
small farming population, for individual
crops with a high water demand, or for
countries with significant foreign exchange
earnings However, it would be extremely
counterproductive in countries with a large
and poor rural population if it interfered
with the income-earning potential of small
farmers and their incentives to produce.
Improving performance and
productivity of existing
irrigation systems
As noted in Chapter 2, there is considerable
under-performance of large dam irrigation
schemes and scope for improving the
performance of existing systems Increasing
competition for water has highlighted the
inefficiencies in irrigated agriculture and
thus increased demands for a more effective
and integrated approach to managing
existing irrigation systems particularly
surface water irrigation. There is also
considerable scope for enhancing the
viability adoption and performance of other
sources of irrigation water such as groundwa-
ter, direct river abstraction and traditional
water harvesting systems In the past,
emphasis on performance enhancement
programmes has had mixed results however,
with rapid decline in gains achieved leading to
the need for periodic restoration, often heavily
subsidised by the state. Policy interventions
and institutional reforms to support technical
interventions have been inadequate.
Improved basin and system level
management
A s reviewed in C hapter 2, the risk and
consequence of sedimentation of reservoirs
138
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
is site-specific, but of considerable impor-
tance in a portion of tlie larger dam popula-
tion. M easuresto improve the sustainability
of existing water resources systems through
sediment flushing and catchment manage-
ment can increase the contribution and
longevity of irrigation systems. Enhancing
infiltration and reducing surface erosion
through catchment-protection initiatives
may improve sustainability of reservoirs and
irrigation systems, but must account for the
trade-off with subsequent losses in annual
water yield and the potential for lower dry
season flows. A review of 94 catchment
experiments from around the world suggests
a loss in water yield of 10, 25 and 40 mm for
a 10% increase in catchment cover respec-
tively for scrub, deciduous hardwood and
pine and eucalyptus."
Further, as expl ai ned earl i er i n C hapter 2,
i ncreases i n vegetation lead to greater
e/aporation without necessarily leading to
greater absorption and a reduction in surface
run-off. Thus the balance betv\een e/apora-
tion and gai ns from i ncreasi ng absorpti on
wi 1 1 determi ne whether catchment measures
I ead to i ncreases or decreass i n dry season
flow' The utility of these options will
therefore be site-specific and depend on the
techniques applied and nxist be developed
and e/al uated i n the I arger context of
natural resources management i n the
catchment. I n parti cul ar the contrast
betv\een the effects on so\ I and water
consrvation of vegetative cover and
structural measures such as embankments
di tches and smal I dams needs to be consi d-
ered.
Sal i nity affects approxi matdy 20% of
i rri gated I and worl dwi de.' C ontrol I i ng
salinity and reel aiming saline I and isan
urgent priority i n order to i ncrease produc-
tivity of existing land, make ^ ,. .
r- ^- Salinity affects
better us of irrigation, and . , ^
^ ^, T ■ ■ ^- approximately 20% of
demonstrate that new I rngati on ^ , , , ,, .,
,. imgated land worldwide.
areascan bemanaged in a ^ ,,.
_^ . , , . ,■ ^- Controlling salinity and
sustainable manner. Application , . . ,. , , .
^ , . ^ , , , reclainning saline land is an
of drainage technology and . .
. ^ ^ ._j , . urgent priority in order to
maintenance of existing dram- . , . .
^ . increase productivity of
age IS one way of containing . ^. , , , ,
^ ^ ^ ,. , ■ , existing land, nnake better
salinity But reliance on physcal ^ . .
, . ^ ,. _^ , use of irrigation, and
drainage of sal me effluent alone , ^\ ^, ^
Zr-^^^,,^, dennonstrate that new
IS insufficient to tackle the ...
, . ^ ^ , irrigation areas can be
problem and an integrated ,. . ,,
, . . nnanaged in a sustainable
approach combi n i ng manage-
\_ . . _r . manner
ment of surface water, groundwa-
ter and agri cul tural practi ces i s essenti al .
Salt- tolerant crops and vegetation can form
part of such strateg es to remove excess
surface v\0ter and I ov\er water tabi es T he
i rri gati on of crops or pastures i n 'seri es^
arranged i n order of i ncreasi ng sal t tol erance
i s a further exampi e of sal i ne management.
I f practised early enou^, the i ntegrated (or
conj uncti ve) management of surface water,
groundwater and sal i nity can prevent the
bui I d- up of sal ts ( se Box 5. 1) . Tri al s on th i s
are currently under v\ay i n A ustral ia and
California.
Water qual ity is another i mportant factor
affecting basin productivity For example,
efforts to i mprove sal i nity probi ems up-
stream may have adverse effects down-
Box 5.1 Conjunctive management of salinity
Conjunctive management, that is groundwater pumping witli reuse of tlie saline
effluent for irrigation, is an economic and sustainable means of salinity control
n the Shepparton Irrigation Region in Australia, one project covering 600 ha
vi/ith 15 groundwater pumps has been in operation since the eariy 1980s. The
salinity of the diluted groundwater is kept below threshold level forthe crops
and the management system prevents salinisation of the root zone. Long-term
sustainability depends on the ability to obtain a salt balance in the area
protected bythe drainage pumps.
Source: Heuperman, 1999, Contributing Paperfor
WCD Thematic Review IV,2 Irrigation Options
The Report of the World Commission on Dams
139
Chapter 5
stream. A n innovative
approach to the problem of
managing the disposal of
saline effluent comes from
the M urray Darling Basin of
A ustralia where disposal is
regulated through regional
load quotas or 'salt credits.'
These credits are used to
ensure highly saline water is released only
during periods of high flow, when disposal
has the least impact on river water quality
The review of irrigation system performance
in C hapter 2 revealed a considerable lag
time between commissioning of irrigation
dams and full development of irrigation
infrastructure. A ccelerating the full devel-
opment of associated infrastructure, such as
canal networks and providing an integrated
package of agricultural support measures for
new irrigators may be a cost-effective option
for enhancing performance.
In most irrigation systems particularly those
with long conveyance lengths a dispropor-
tionate amount of water is lost as seepage in
canals and never reaches the farmlands. For
example, 40% of the water diverted from
the Indus basin in Pakistan is lost in con-
veyance. In the late 1980s it was estimated
that improvements in supply efficiency
could save some 14.8 billion mVyrof vvater.'
Canal lining is one such improvement.
Experience with buried plastic liningsin
C hi na demonstrates good performance over
18 years" T he U nited States i ntroduced a
low-cost I i ni ng programme and si nee 1946
93me 4 600 km of vari ous types of I i n i n^
have been installed.'
But i n the absence of good qual ity control
and effecti ve mai ntenance the canal I i ni ngs
often have not achieved the predicted
i mprovements i n water savi ngs and rd i abi I i -
ty of supply. Studies from Pakistan in the
earl y 1990s demonstrated that a focus on
targeted mai ntenance is more cost-effective
than deferri ng probi ems to rehabi I i tati on
programmes or I i ni ng canals' "
I nadequate mai ntenance is a feature of a
number of i rrigation ^ems i n de/dopi ng
countri es A n i mpact eval uati on of 21
irrigation projects by the World Bank
conci uded that a common source of poor
performance was premature deteri orati on of
water control structures'' Often poor
mai ntenance reduces i rri gati on potenti al
and affects the performance of ^ems.
T he scope for i mprovements through better
maintenance issignificant. The Food and
AgricultureOnganisation (FAO) of the
U nited N ati ons esti mates that the total area
that can be usd with i mproved mai nte-
nance i s 150 mil I i on hectares' ' I n I ndi a,
such steps coul d add approxi matd y 9 mi I -
I i on hectares to the i rri gated area.' I n
countri es I i ke N i geri a, onl y 52% of i rri ga-
tion from large-scaleschemes was actually
used in 1993.'* I n the combined Gezira-
M anagi I schemes i n Sudan, 126 000 ha had
to betaken out of production due to sedi-
mentation and v\eed g'owth in canals"
Performance- based mai ntenance contracts
can be used as a cost-effective management
measure to maintain ^em integ"ity Such
an arrangement can be e>ctended to cover
operation of the mai n canal ^em i n
tandem with decentral ised farmer manage-
ment at the secondary and tertiary l»/d .
P roposal s to i mprove ^em effi ci ency
should be viewed in a river basin context
exami ni ng the i nteracti ve effects of surface
water, drai nage re- use and groundv\ater
recharge."
140
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
On-farm technologies for enhancing
the productivity of land and water
Raising the efficiency of surface irrigation
provides considerable scope for improve-
ments within existing irrigation systems,
whether the water comes from dams, rivers,
or groundwater. T here are large variations in
efficiency. A s cited in C hapter 2 the average
water use efficiency that was reported for
the A si an tas project by theWCD Case
Study was 40%. However, the range of field-
level efficiency for the project varied from
25% to 55%. Efficient surface irrigation,
however, has produced figures of 60%.
I n a nurrter of regonSi irrigation has
promoted cultivation of water- intensive
crops such as sugarcane and rice. Forexanv
pie, intensive cultivation of sugarcane in
I ndia and Pakistan has led to unsustainable
useofwater. A n umber of tech nologes exist
for i mprovi ng vvater use eff i ci ency and,
hence, the producti vi ty of v\0ter i n i rri ga-
tion systems
Micro- irrigation methodSj such as sprinkler
and dri p ^ems provi de an opportunity to
obtai n hi ^er effi ci ency gai ns than those
available in surface irrigation. Field applica-
tion efficiencies are typically in the range of
70-90%." The output produced with a
given amount of water is i ncreased by
al I owi ng for more frequent and smal I er
irrigation inputSj improved uniformity of
wateri ng and reduced water I osses T hese
methods have found wide usage i n v\0ter-
scarce regi ons N earl y al I of I srael 's i rri gated
area, 68P/o of J ordan's and 40% of Brazi I 's
i rri gated area uses mi cro- i rri gati on methods>
as do smal I areas i n C hi na, I ndia and parts
of Africa.
T he capi tal - i ntensi ve nature of mi cro-
i rri gati on technol ogy and I ow cost of v\ater
has prevented more widespread adoption
among smal I hoi ders i n de/d opi ng countri esj
but local manufacture has brou^t down the
cost and i mproved vi abi I i ty for h i gh- val ue
crops Further development in this area may
make such pressuri sed i rri gati on
technol ogy attracti ve to farmers
in developing countries Low
technology versions such as
maki ng portabi e dri p I i ne and
bucket kits for small household
i rri gati on, have recently gai ned
support." A nother method for
i ncreasi ng water use effi ci ency i s
to change crop cuiti vati on
practices (see Box 5.2) .
A s wi th other water rrenage-
ment initiatives the potential
for effi ci ency gai ns i n v\ater use needs to be
exami ned withi n a ri ver basi n context, as i n
many cases I osses upstream are recouped
downstream.
Policy and institutional reform
Policy and management initiatives are
fundamental to raising productivity per unit
of land and water and increasing returns to
labour. They are often interlinked and
require political commitment and institu-
tional co-ordination.
A gricultural support programmes tend to be
developed and implemented in relative
isolation from irrigation systems. Typically
there is weak co-ordination between agen-
cies responsible for agricultural activities
Box 5.2 Cultivation tecliniques can reduce irrigation water use
The M uda Irrigation Scheme in M alaysia reported a reduction in irrigation
duration from 140 to 105 days and a reduction in overall water use of 28% as a
result of the shift from transplanted rice to wet seeded nee. Although the
mpetus for this change was shortage of farm labour, it had a considerable water
conservation benefit.
Source: Fuji and Cho, 1996, cited in Guerra et al, 1998
Micro-irrigation metttods,
such as sprinlder and drip
systems, provide an
opportunity to obtain
h/gher efficiency gains
than tliose available in
surface irrigation. Field
application efficiencies
are typically in the range
of 70-90%.
The Report of the World Commission on Dams
141
Chapter 5
(such as extension services, land
consolidation, credit and mar-
keting) and those responsible for
irrigation development. Price
incentives are also inadequate to
raise productivity and the
outcome is a significant gap
between potential and actual
yields. In the absence of better
opportunities from agriculture,
many farmers seek off-farm employment.
I ncentives to enhance production are
necessary and can result from a more inte-
grated set of agricultural support measures
and the involvement of joint ventures that
provide capital resources and market access
to smallholder farmers. A ppropriate arrange-
ments need to be introduced for such joint
ventures to ensure an equitable share of
benefits.
ci ency and promote a shi ft to I ess water-
demandi ng cropsj especi al I y i n ari d and
vvater-scarce regions Ideally pricing struc-
tures for irrigation should reflect the cost of
suppi yi ng v\ater and associ ated external i ti es
and should be designed with stepped rates to
provi de security for basi c I i vd i hood needs
I n many ^ems farmers are charged on a
per hectare basi s i ndependent of the vol ume
of v\0ter used. This removes any i ncenti ve to
save vvater. One obstaci e to vol umetri c
charges is the practical difficultyof measur-
i ng vvater del i vered throu^ an open canal
^em to a large number of smallholders A
solution may lie in v\0ter user organisations
acti ng as i ntermedi ary bodi es T hey can
enter into contracts with irrigation agencies
and recover the charges di recti y from the
irrigators
A s demonstrated in C hapter 2 the extent of
recovery of the costs of operations and
maintenance in large irrigation dams in the
WCD Knowledge Base and irrigation
systems in general is often limited. In a
recent study of 16 projects, annual irrigation
fees varied from zero in Thailand to as high
as $130/ha in C olombia.^" Collection rates
vari ed from 50 to 100%. O ne rati onal e for
hi ^er fees i s that they wi 1 1 encourage nx)re
efficient irrigation practice and a shift to
more v\ater-effi ci ent and hi ^er-val ue crops
For exampi e, i n the csee of Paki stan and
I ndia reported above, farmers are attracted
to the i ntensive cultivation of sugarcane by
its profitability. This is because v\ater
charges are low, capital costs are not recov-
ered, and the mitigation costs of attendi ng
to v\aterl ogg ng or sal i ni ty probi ems are not
borne by the farmer. Removing the subsidies
inherent with supplying irrigation and
drai nage servi ces may encourage adopti on of
technol ogi es for i ncreasi ng water \jse effi -
0 ne of the maj or contri butors to poor
performance of I arge i rri gati on systems i s the
centralised and bureaucratic nature of
system management, characteriad by low
1 e/d s of accountabi I i ty and I ack of acti ve
user parti ci pati on . A gency reform and
management transfer have been i ni ti ated i n
more than 25 countri es where governments
are gradual I y reduci ng thd r rol es i n i rri ga-
tion management and transferri ng responsi-
bi I i ty for vari ous I evd s of the ^ems to
farmers: organisations and water user associ-
ations T he maj or i mpetus for the transfer
I i es i n the desi re to cut back publ i c expendi -
tureon operation and maintenance costs.^'
T he structure of farmer i nvol vement vari es
from transfer of assts to a range of j oi nt-
management modds As yet, there is no
general e/idenceto suggest that irrigation
performance has i mproved as a result of
transfer alone, although there are promisi ng
exampi esindicatingthat decentral i sati on
may be a requi red, but not suff i ci ent meas-
142
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
ureto improve performance." Experience
lias shown that in order to be effective, a
strong pol i cy f rameworl< i s requi red, provi d-
i ng cl ear pov\ers and responsi bi I i ti es for the
farmers: organisations"
Water ri^ts and trading are highly conten-
tious issues. Win-win situations occur for
farmers when they trade a part of their water
to replace lost income while at the same
time being able to finance water use effi-
ciency gains from their remaining water
allocation. In the U nited States, Colorado
has one of the most advanced institutional
support networks for water markets. I n
recent years some 30% of a district's annual
water entitlements has moved through the
rental market. T he price at which farmers
sell water is often significantly higher than
their cost of supply.
Enabling conditions for water markets are
clear and secure entitlements along with
effective administrative systems and infra-
structure to regulate the trade and to moni-
tor compliance. T here should be clear
environmental limits on the extent of the
trade. T hese prerequisites are not present in
many developing countries. Chile is often
cited as an example where the development
of water markets has helped to avoid expen-
sive new water infrastructure, such as dams,
by allowing transfers of water rights from
agricultural to urban sectors." Concerns
over v\0ter tradi ng stem from the equi ty and
I i vd i hood i mpl i cati ons of permanent trades
of v\ater (as opposed to yearly rentals) from
small to large farmers or from rural to urban
areas
Improving alternative supply-
side measures
Prior to the advent of large-scale irrigation,
a number of traditional water appropriation
techniques and irrigation methods were used
in different contexts. Several supply options
existed, complementing each other and
contributing to agriculture, food production
and livelihoods. In today's context, local
solutions and large-scale irrigation need not
be mutually exclusive. T hey can co-exist
and complement each other, raising food
production and enhancing livelihoods.
For these systems to function optimally, a
number of enabling conditions are required.
Water appropriation systems need repair and
maintenance, desiltingand weed clearing.
I nnovations and enhancement of traditional
methods are needed to improve crop pro-
ductivity. To optimise the productivity of
the restored water management systems,
appropriate land use, including cropping
patterns, mix and rotation need to be
promoted. Sustaining these location-specific
systems and practices will depend on protec-
tion of sensitive catchments, floodplains
and deltas. Lastly, improving community
stakes will be an important factor for greater
application and long-term functioning.
Enhancing rain-fed agriculture and
supporting local techniques
Some 80% of agricultural land worldwide is
under rain-fed cultivation, contributing to
60% of food production." Given the
number of low- income households that rely
on rain-fed agriculture throughout the
devd opi ng worl d, the enhancement of
opportuniti es i n thi s sector can have a maj or
effect on productivity and livdihoods
Over a peri od of ti me these farm! ng practi c-
esand irrigation methods have been margin-
alised by irrigation policies thelackof
institutional support and low le/dsof
investment and re^rch. I n recent years
i ncreasi ng attenti on has been pal d to the
successes of such methods and thd r i mpor-
The Report of the World Commission on Dams
143
Chapter 5
Box 5.3 A local approach to integrated water management,
Rajasthan, India
Water-harvesting structures to store rainwater runoff were constructed in the
Bhagani Tildeh river catchment in Rajasthan in response to water scarcity. Tracts
of land inundated by the construction of embanlcments and dug retention
ponds are referred to as johads. The production of crops and milk have
increased many-fold in the Alwar district of Rajasthan due to the greater
availability of water through the construction of 2 500 johads in 500 villages. The
total expenditure incurred was in the order of $3.6 million (in 1998 pnces), with
73% contributed by local people. The johads have recharged the groundwater
table resulting in an average nse from 200 feet below ground level to 20 feet.
Sources: Thakkar, 1999, Contributing Paperfor
WCD Thematic Review IV,2 Irrigation Options
tance is now being recognised by policy-
mal<ers.2s T lie productivity of tlies rain-fed
^ems can be enlianced tlirough i mproved
agricultural support, local commitment to
de/d op rel i abl e water suppi y sources and
small-scale, low-cost technologies A
prog'esave development path, where
support provi ded i s tai I ored to i ncreasi ng
I ocal capaci ty i s emengi ng as an i mportant
conceptual approach to the development of
such ^ems. For example, simpletechnolo-
g es such as treadi e pump and I ow-cost dri p
systems can be i ntroduced as a f i rst stage
i n novati on . I n a few years - once farmers
have recovered thei r i nvestment costs - the
returns can be re-i nvested i n more advanced
technol ogi es such as smal I motori sed
groundwater pumps thus gradual I y bui I di ng
Box 5.4 Rainwater harvesting for domestic and agricultural use in
China
Gansu Province lies on the loess plateau in central China and is one of the dnest
and poorest areas of the country, with annual per capita incomes of around $70-
80 in rural areas. In dry years, traditional rainwater collection could not always
provide sufficient water, and people were forced to trek long distances to rivers
orto depend on government watertrucks. In response to the 1995 drought, the
1-2-1 project was launched; it provided 1 clay tiled roof catchment area, 2
upgraded cement water cellars, and plastic sheeting for concentrating rainwater
runoff on 1 field. The project ensured that some 1 million people not only had
sufficient water but also could grow their own food and earn limited income
through cash crops. The total implementation cost forthe project came to $12
per capita.
Source: Gould, 1999, Contributing Paperfor
WCD Thematic Review IV,3 Water Supply
the technol ogcal and capital basofthe
farmer."
A gri cul ture i n rai nfed areas i s supported by a
number of water appropri ati on methods
M any of these have been u^ for centuries
and have been adapted to satisfy local
needs' ' Rai nwater harvesti ng uses smal I
dams and embankments to trap run-off,
usual I y with the ai m of recharg ng ground-
water. Surface SDurces such as spri ngs and
streams are al so diverted i nto natural
depressions usi ng bunds and check dams I n
floodplains cultivation uses natural mois-
ture brought in by annual floods A variety
of v\0ter management techniques are used to
tap the sol I water i n wetl ands and val I ey
bottoms Many of these localised practiss
serve nxiiti pie purposes such as checki ng
sal i ne i ngress i n coastal areas and rechargi ng
groundwater i n floodplai ns Effectiveness
sustai nabi I i ty and producti vi ty are I ocati on-
specific and depend on the e>ctent to which
they are spati al I y i nteg^ated. O ne successful
example comes from the Rajasthan area of
India (see Box 5.3).
I n many regions rai nwater is harvested
whereitfalls In Argentina, Brazil, and
Paraguay natural or artificial depressions are
used to store rai nv\0ter for crop and I i ve-
stock production. I n the smi -arid areas of
Argentina, Brazil and Venezuela rainwater
run off captured from roads i s col I ected i n
drai nage di tches or street gutters and
transported to cultivation areas" Rainv\ater
harvesti ng i n i ti ati ves i n G ansu provi nee i n
C hi na have provided both domestic and
i rri gati on water to areas pre/i ousi y i n
drought (see Box 5.4) .
T here are hundreds of thousands of smal I
reffirvoi rs or water tanks around the W3rld,
rangi ng from farm dams i n A f ri ca used to
provi de i ntermedi ate storage, to recessi on
144
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
reservoirs in C ambodia tiiat are used to
enliancesoil moisture for cultivation. In
India and Sri Lanka, more than 500 000
tanks store rain water, sometimes supple-
mented by water from streams or small
ri vers.^° Tank systems have provided i rriga-
tion and supported agriculture and liveli-
hood for centuries in South Asia, although
reliability problem^ siltation, poor mainte-
nance and degradation have reduced the
area served by smal I tanks i n I ndia from 4.6
mi 1 1 ion hectares i n 1960 to 3.3 mi 1 1 ion
hectares by 1987-88.' ' I n addition to
hd pi ng i rri gati on, tanks can pi ay SB/eral
important ro\es, such as flood control, soil
erosion control, conservation of runoff
duri ng heavy rai nfal I and recharge of
groundwater.
The implications of the widespread replica-
ti on of these smal I -seal e storage methods on
reduci ng demand for i rri gati on water and
enhanci ng the sustai nabi I i ty of groundwater
supplier as well as their impact on existing
surface water sourcesj could be far reach i ng.
A s descri bed i n Box 5.5 and C hapters 3 and
4, the floodplai ns and deltas of a number of
the worl d's maj or ri vers support wetl and
eco^ems of exceptional productivity that
in turn support large rural communities
Fl oods provi de natural i rri gati on that
fertilisesfloodplain soils" Asthefloodv\a-
ters recede, arable crops are grown. Some
sol I moi sture persi sts i n the dry season and
provides grazing for migrant herds Flood-
plain cultivation is among the most produc-
tive and widely practised of agricultural
^ems in central and Sub-Saharan Africa.
Similarly wetland and delta cultivation is
widely practisd in Southeast Asia. A form of
flood agi culture specific to arid envi ronments
is spate irrigation, which diverts seasonal flood
flows from dry riverbeds. Large areas under
spate irrigation are found, for example in
M orocco, Yemen and Pakistan."
As noted earlier, there isa need
to adequately account for the
effects of structural alternatives
such as dams and le/eeson
thes natural irrigation 'options: .
1 1 i s al 30 necessary to consi der
the option of managed flood
rd eases from exi sti ng faci I i ti es
as a means of re-estabi i shi ng and
supporti ng these productive
^ems
Adopting water recycling
Reuse of irrigation drainage water can be a
major supply source in areas where intensive
surface irrigation is currently practised.
W ithout formal arrangement, farmers in the
Eastern N lie Delta in Egypt use approxi-
mately 3 billion cubic meters of saline
drainage water every year for irrigation after
suitable dilution or treatment. Similar
examples exist in the North China plains,
A rkansas valley in Colorado, the Pecos
valley in N ew M exico and A ustralia."
D rai nage water reuse requi res i ncreased
levdsof management ski I Is to deal with
i ncreasd I e/d s of sal i n i ty, toxi c concentra-
tionsand associated health concerns
Box 5.5 Wetland and floodplain agriculture
Cultivated wetlands and valley bottoms, with some form of traditional water
management constitute 12 200 km^ in Central Afnca, East Africa and the Gulf of
Guinea Flood recession agriculture is practised over an estimated 10 400 km in
the Gulf of Guinea and the Sudano-Sahelian region. In Senegal, the floodplain
runs 600 km downstream of Bakel and covers an area of 10 000 km-. In good
years half of it will be inundated, supporting close to a million people who
depend on cultivating the floodplain. In southern Afncan countnes seasonally
waterlogged lands called dambos, augmented by small human powered
devices like shallow treadle pumps, support crop production and smallholder
food security In countries like Zambia, dambos cover 38 000 km", Similariy
wetland and delta cultivation is w/ldely practised in East Asia. In Vietnam, the
Mekong delta constitutes the principal nee producing area of the country. Rice
is also grown extensively in the wetlands of Cambodia and in smaller quantities
in Laos and Thailand.
Sources: Gulf of Guinea and Sudano-Sahel in FAO, 1995, plO;
Senegal in FAO, 1997, pl36: Zambia m Postel 1998, p213:
Southeast Asia in Fnednch, 2000,
WCD Regional Consultation Paper
The Report of the World Commission on Dams
145
Chapter 5
Reuse of urban wastewater is a significant
source for irrigation in a number of coun-
tries. In Israel, 275 million m^ of wasteiwater
are used for i rri gati on after treatment. This
i s approxi mate! y 22% of the total agri cul tur-
al use of water." Strict controls are needed
on the I e/d of treatment requi red for
variousclas^ of water, with more stringent
requi rements for i rri gati ng food g'ai ns than
fodder crops Examples from G hana and
Kenya also show the potential for peri-urban
irrigation based on water reuse." Where
regulation of water quality is weak, this
practice raises significant health concerns
Investing in conventional
supply-side measures
The potential to expand irrigation into new
areas has sharply declined due to increasing-
ly constrained resources and significant
increases in the unit development cost.
C onventional sources of water for irrigation
besides reservoir storage behind large dams
include diversion from rivers and lakes and
groundwater abstraction.
Diversion canals or lift irrigation pumping
schemes supply irrigation systems by ab-
stracting water from rivers. For example,
river diversions and pumped irrigation serve
80% of the irrigated area in Kenya and 68%
in Nigeria." Thelackof over-season storage
i mpl i es that the capacity of the ^em to
provi de nxil ti pi e crops depends on the
rd i abi I i ty of ri ver f I ow. T he si E of run-of-
ri ver schemes can vary from a few hectares
to hundreds of thousands Run-of-river
diversions can be usd to supplement
storage- based ^ems. I n Sri Lanka, for
exampi e, di versi on wd rs were bui 1 1 to
capture drai nage water from upstream dan>
based irrigation projects for reus.
G roundwater abstracti on has pi ayed an
important role in the^obal expansion of
i rri gated ag'i cul ture. The aval I abi I i ty of
dectricity centrifugal pumps and v\ell-
dri 1 1 i ng technol ogy gave a maj or boost to
rapid growth, particularly by individual
farmers Countries such as China, the
United States India, Pakistan, Ban^adesh,
Saudi A rabi a and the N orth A f ri ca regi on
have high rates of groundwater use. C ur-
rentlyin China, 8.8 million hectares of land
are i rri gated through g'oundv\ater wd I s
constituti ng 18% of the total i rri gated
area." TheOgallalaaquiferintheUnited
States v\aters a fi fth of that nati on's i m ^ed
I and.^ ' By the I ate 199Qs gDundwater i rri gat-
ed over half of all irri^ed land in India,
contri buti ng to 78% of additi onal i rri ^ed
area created betv\mi 1984 aid 1994."
G roundwater - employed on its own or i n
conjunction with surface irrigation - is
often more productive than surface irriga-
tion per unit applied. The determining
factor appears to be the hi gher degree of
control aval I abl e to farmers who are often
prepared to pay considerably more for
rd i abl e sources of suppi y such as groundwa-
ter." I mproved management of surface
irrigation ^emSi leadingtog^eater rdiabil-
i ty of suppi y may si mi I arl y i ncreas produc-
tion and returns to water.
C onti nued wi thdrawal of groundwater at
current le/dsis hov\e^er, becoming unsus-
tainable in many places The O gall al a
aquifer, for i nstance, is bd ng depleted at the
rateof 12 billion n1 annually Falling water
tables, increased pumping costs and histori-
cally low prices have led to a reduction in
the area irrigated by the 0 gallala of 20%
over a 10-year period." Groundwater
depletion has been a growi ng concern i n the
North China plains for over three decades
with water I e/d s fal I i ng by 30 metres si nee
the 1960s" Efficiency improvement meas-
ures are as i mportant to groundv\0ter systems
146
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
as to surface water irrigation. Effective
regulation is also necessary to curb over-
pumping, which leads to lowering water
tables and can limit access of poorer farmers.
Sustainable use of groundwater can be
achieved through controlled abstraction and
associated recharge measures. Recharge can
be achieved by spreading surface water over
large areas, using recharge wells, and water
harvesting techniques as described above.
Floodplains perform a significant natural
recharge function . A s floodwaters soaks
through, underground reservoirs are re-
charged, and these supply water to wells
beyond thefloodplain. Recharge can also be
a suitable approach for controlling saline
intrusion and land subsidence and for
reducing pumping costs. M ost of the artifi-
cial recharge systems used to date have
focused on small-scale systems or municipal
water supply uses.
C urrently, almost half of the large dams in
the world provide irrigation services. The
spread and contribution of dams to irriga-
tion and food production and the environ-
mental and social implicationsof their use
were described in previous chapters. A s
discussed in Chapter 4, irrigation projects
can have significant multiplier effects on
the local economy in terms of contributing
to the development of agricultural process-
ing and related industries. The W CD
Knowledge Base does not elaborate on the
comparative effects of the different options
in terms of engendering such multiplier
effects, although this will bean important
consideration for options assessment.
Obstacles and enabling
conditions
A number of policy, institutional, and
regulatory factors hinder the emergence and
widespread use of an appropriate mix of
options that would respond to
different development needs,
sustain a viable agricultural
sector, provide irrigation and
offer livelihood opportunities
to large populations. First,
policy and institutional
support for innovation,
modernisation, adaptation,
maintenance and extension of
traditional irrigation and
agricultural systems was
lacking in the past. Increasing
recognition of this has led a
number of actors to place priority on im-
proving rain-fed agriculture and developing
small-scale irrigation capacity A n extension
of this priority is the need to protect (or
restore) the natural functioning of deltas,
floodplains and catchments in order to
sustain and enhance the productivity of
traditional systems in these areas.
Second, the institutional framework needs
to be redefined by transferring management
to decentralised bodies, local governments
and community groups (water users associa-
tions or other appropriate bodies) for
recovering tariffs and maintenance. Strong-
er commitment is required to transform
irrigation bureaucracies into more efficient,
service-oriented organisations capable of
managing water and land in an integrated and
sustainable manner Irrigation water needs to
be appropriately priced so that charges are
based on volume used, taking into account the
need to support basic needs and serve both
equity and conservation. Third, emphasis must
be given to developing a package of agricultur-
al support measures that are mutually reinforc-
ing and develop intersectoral linkages in the
local economy so as to spur rural development.
T hese efforts also need to counteract the
tendency of current policies and extension
services to impose high transaction costs and
Sustainable use of
groundwater can be
achieved ttirougfi
controlled abstraction
and associated recharge
measures. Recharge can
be achieved by
spreading surface water
over large areas, using
recharge wells, and
water harvesting
techniques.
The Report of the World Commission on Dams
147
Chapter 5
The priority for a
sustainabie and
equitabie giobai energy
sector is for all societies
to increase the efficiency
of energy use and the
use of renewable
sources. High-
consumption societies
must also reduce their
use of fossil fuels.
risks on smallholder farmers in
developing countries. M easuresto
enhance security of tenure are
also required.
Farmers also need access to
international markets through
reduction in barriers and sup-
portive domestic policies. In
response to structural adjust-
ment programmes and interna-
tional agreements on world
trade in agriculture, many
developing countries have liberalised their
agricultural policies, including cutting tariffs
and subsidies. H owever, tariff and non-tariff
barriers to 0 EC D markets - such as the
large production and export subsidies for
farmers in the U S and European U nion -
limit the ability of developing countries' to
diversify their agricultural sectors and gain
the benefits of increased international trade, as
well as increasing rural poverty where local
farmers cannot compete with cheap imports'^
To sum up, future assessment of alternatives
wi 1 1 need to cl earl y consi der the fol I owi ng:
■ improvements to the efficiency and
productivity of existing irrigation systems
before planning and implementing new
ones;
■ adaptation and expansion of local and
traditional water management solutions;
■ more co-ordinated management of
surface and groundwater resources; and
■ improvement of the productivity of rain-
fed agriculture.
To make progress in this area will require
concerted efforts in policy formulation and
institutional reform.
Asan aid to this assessment it will be useful
to more fully understand the contribution of
alternative irrigation and agricultural
options to food production and livelihood
security. For this purpose, analysis that
extends beyond the immediate costs and
benefits of these options to the secondary
economic impacts on specific social groups
is necessary.
Energy and Electricity
The range and scale of energy resources and
technologies for electricity demand-side
management and supply have expanded
dramatically in the last quarter-century due
to advances in individual technologies and
greater success in adapting existing and new
technologies to local settings. W hile coun-
tries have different energy resource endow-
ments, there is no supply global crisis on the
horizon as is anticipated for fresh water. The
world's renewable sources and fossil fuels are
sufficient to meet foreseeable global de-
mands for electricity generation over the
next 50-100 years using existing or near-
term technologies." Moreover, therangeof
energy systems and technol ogi es that may be
cal I ed upon to convert pri mary energy SDurces
i nto d ectri ci ty has dranBti cal I y expanded i n
the I ast few decades T he pri ori ty for a sustai n-
ableandequitable^obal energy sctor is for
all 9x1 eti es to increas the efficiency of
energy use and the use of renewabi e sources
Hi ^-consumption sxieties must also
reduce thei r use of fossi I fuel s
Key factors i n the expansi on of opti ons
i ncl ude the i mproved capaci ty of de/d opi ng
countries in design and manufacturing
growi ng experi ence i n adapti ng new tech-
nol ogles to rural and decentralised settingsj
and enhanced cost-competitiveness of the
new technol ogi es due to vol ume producti on
- rangi ng from wi nd-turbi nes to compact
fl uorescent bul bs T h&e have given de/d -
opi ng countri es the opportun i ty to 'I eapfrog"
over ol der opti ons when extendi ng sen/i ces
148
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
to rural and urban areas. Innovation and
change were spurred by the oil price shocks
in the 1970s and 1980s, which prompted
major academic, government and industry
programmes to develop alternatives. A s oil
prices in the late 1980s and 1990s fell back
in line with historic real prices and the
perceived shortages and security threat
receded, alternatives were set aside. Recog-
nition of the causes and scale of the threat
of global climate change in the 1990s have
refocused work on alternatives, and galva-
nised the thinking on sustainable develop-
ment, including the role of the power sector.
A tripling of oil prices in early 2000 pro-
vides a further reminder of the need for
continued long-term research and develop-
ment of alternatives to fossil fuel technolo-
gies.
Some observers suggest that the world has
entered a period where the revolution in
electricity technology - coupled with the
revolution in digital technology - will pave
the way for a profound transformation in the
delivery of and access to electricity services
early in the 21* century." It iscertainly
broadly accepted that the long-term trend is
towards a ^ obal energy system that i s I ess
carbon- i ntensi ve and I ess rd i ant on fi n i te
energy resources Nonetheless there is
consi derabi e debate on the means and
ti mi ng of the transition, its shape i n differ-
ent regonsof thevvorld, and itscontribu-
ti on to addressi ng the I arger ^ obal equi ty
i ssues of di sproporti onate resource use.
T here i s al so consi derabi e i nerti a and
resi stance to change i n the exi sti ng ^em,
but the direction implied isclear: ashift
towards 'cl eaner fossi I f ud s; ' a si gn i fi cant,
accderated shift towards the use of renewa-
bl e energy sources for d ectri ci ty generati on
and a focus on i mprovi ng effi ci ency i n the
ddi very and use of d ectri city services
The worl d's demand for d ectri c-
ity has doubled over the past 22
years" People are using more
d ectri cal services in the tech-
nology-driven digtal economy
and are using d ectri dty vrore
widdyin post- industrial,
transitional and devd oping
economies Yet the supply and
use of d ect ri d ty i s h i gh I y
skewed betv\een industrial and de/d oping
countries and between the rich and the poor
i n de/d opi ng nati ons T here are enormous
opportunities for derrend-side management
in industrial economies Government efforts
to reduce g^enhous gas erri sa ons and make
a contri buti on to d i mate stabi I i sati on tar^
are i ndi cati ons of moves i n that di recti on .
T here i s al so consi derabi e scope for
cy i mprovements i n devd opi ng
economies where they v\ould
HDderate the requi red i nvestment
in new supply In addition, almost
2 billion people, both urban and
rural poor, have no access to
d ectri dty at all." Rural popula-
tions are often low-incomeand
I i ve i n setti ngs where central i sed
energy srvi ces are expensi ve,
both in national or consumer
terms Decentralised, off-grid
^emsarean important option
in these areas
efficien-
Rural populations are
often low-income and
live in settings where
centralised energy
services are expensive,
both in national or
consumer terms.
Decentralised, off-grid
systems are an
important option in
these areas.
Fi gure 5. 1 provi des a si mpl e schemati c
representati on of the d ectri ci ty sector today
showing generati on, transmission, distribu-
tion and end- use components As shown,
there are three general ways to i mpnove the
dd i very of d ectri ci ty sen/i ces
■ demand-side management options,
concerned with efficiency on the user
side of the electricity meter;
The Report of the World Commission on Dams
149
Chapter 5
■ supply-side efficiency measures, con-
cerned witli iiow efficiently electricity is
generated by the centralised or local
supplier and transmitted and distributed
to users; and
■ new supply options, which replace
existing generation options or supply
incremental growth in demand beyond
what can be achieved by options in the
first two categories.
N ew supply options may be further divided
into grid and off-grid options. The latter
includes small isolated 'mini' grids and
stand-alone supply to individual customers
and homes. T hese options are outlined
below beginning with demand-side manage-
ment and then passing on to supply-side
options (efficiency and new supply) and finally
covering options for rural electrification.
Demand-side management
I n the context of this report, demand-side
management (DSM ) represents an opportu-
nity to reduce the need for electrical genera-
tion and consequently the need for dams.
T he discussion also has broader dimensions.
Demand-side management is about consum-
ers using less electricity and using it more
efficiently in the residential, industrial,
commercial or government sectors. T he
major entry point for these improvements is
the replacement of energy inefficient
appliances. Enabling conditionsthat affect
DSM uptake of improved appliances include
the replacement cycle (whether it is a few or
many years), standards, comparative cost
and availability consumer awareness and
affordability Generally investments in DSM
that promote consumers' use of efficient
appliances will be more than offset by the
avoidance of investments in new supply and
environmental and social costs of generation.
Recent investigations as part of the U N DP's
World Energy Assessment, to be finalised in
2001, indicate significant potential for
electricity efficiency improvements in all
countries.*^ The technical potential in
Figure 5.1 Schematic of Electricity Options
Demand
Tariff structure
Load management
Interruptable loads
End-use efficiency
Transmission and
Distribution
Loss reduction
and improvement
System reliability
• transmission
• distribution
Electricity
Supply
Main grid
Power plants
• thermal (coal,
oil, gas)
• nuclear
• hydro
(storage,
run-of-river,
pumped storage)
• wind
• solar
• biomass
• co-generation
Power plants in
mini-grid
• diesel
• small hydro
• biomass
• wind
• cogeneration
Isolated network Home systems
• solar home
systems
• micro turbines
• fuel cells
150
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
countries with a iiigii per capita consump-
tion, sucii as the U nited States, may be up
to 50%, including modification of consump-
tion and improved conservation behaviour.
Others see less potential. Recent successful
programmes in A sia and elsewhere also
illustrate that there is great potential for
DSM , particularly in the modern sectors of
developing countries. 5° Most efficiency
measures and technologes are cost-effective at
today'selectridty pricey and the us of full
environmental andsxial costing of electricity
supply options n^kestheme/en moreso.
Despite the prom! actual global invest-
ments i n energy effi ci ency and the savi ngs
from them conti nue to be smal I compared
with the potential . A nd whi le uti I ity-govem-
ment partnershi ps i n DSM g'ew stron^y i n
the 1980s i n N orth A meri ca and Europe, the
move to open markets has led to lov^"
electricity prices and a pervers disincentive
for DSM i n terms of tariffs At the same
ti me, many pov\er uti I i ti es have dramati cal I y
cut their DSM programme budgets
Se/eral market and institutional barriers
conti nue to obstruct the accelerated adop-
tion of effi ci ent end- use appi i ances and
real isation of the potential of DSM :
■ Utilities closest to the consumer often view
efficiency in terms of loss of market share,
and in trying to meet a growing demand
tend to think at first of new supply options.
■ Subsidies are still given for energy supply
and consumption (especially for energy-
intensive consumers), and there is a lack
of credible commitment to energy
efficiency from governments and inter-
national agencies.
■ G overnments find it easier and more
politically attractive to approve new
supply options than to get consumers to
use energy more wisely.
■ The structure of the international energy
industry remains biased against DSM .
The latter bias stems in part from the
diversity of producers in the industry which
inhibits the development of a lobby struc-
ture similar to that of the energy supply
industry which is dominated by some 50
global players"
The fundamental enabling condition to
i mprove the prospects for DSM is that
governments I ead the way and
cl earl y defi ne the support rol es
for utilities Effective policies
that can reduce transaction costs
i ncl ude conti nuation and expan-
sion of information and product
promotion, training programmes
on energy effi ci ency sen/i ce for
suppi i ers and consumers mi n i -
nxim effi ci ency standards
I abd I i ng and endorsement of
hi ^-effi ci ency equi pment and
selective government procure-
ment. Other steps will require
i nnovati ve fi nanci ng and con-
tracting mechanisms removal of subsidies
for conventional supply options and crea-
tion of power- sector regulatory frameworks
and market i ncentivesthat encourage DSM .
U I ti matd y bui I di ng capaci ty to desi gn and
dd i ver effi ci ency pol i ci es and programmes
in government agendesand utilitiesis
requi red.
Supply-side options
Before dectricity reaches the consumer,
there are two broad ways to improve dectri-
cal services: investment in supply-side
efficiency and new generation. The latter
option involves two further issues - substi-
tuting current generation with new sources
(for example replacing fossil fudswith wind
M ost efficiency
measures and
tectinologies are cost-
effective at today's
eiectricity prices and
the use of fuii
environmental and
social costing of
electricity supply
options makes them
even more so.
The Report of the World Commission on Dams
151
Chapter 5
Major advances in
electronic control
systems and direct
current transmission
technology, including
back-to-back AC/DC
converters, are paving
the way for operation
and grid connection of a
diverse array of options
on electrical systems,
particularly renewables.
power), and meeting increments of demand
growtli in economies tliat are expanding.
Supply-side efficiency
From tlie point wiiere tfie electricity is
generated to its end-use destination, numer-
ous technical and non-technical losses may
occur. The technical losses include con-
sumption at the power station, step-up
transformer losses, and transmission and
distribution losses. There is considerable
scope to reduce conveyance losses in many
countries and these require urgent attention,
especially where programmes have not been
introduced.
Losses between what is sent out from the
power station and what is recorded as power
consumed on the customer's meter can be as
high as 35-40% in some countries - and
more in exceptional cases. M aking existing
transmission and distribution
systems work better can lead to
considerable savings, and often
defer the need for new supply In
India, for example, 35% of
electricity generated is lost in
the transmission and distribution
system before reaching the
consumer Yet it is considered
technically feasible to reduce
these losses to around 15%."
M oreover, the i mprovements are
easier to implement than DSM.
I nvestment i n i mprovi ng the
technical efficiency of transmis-
sion and distribution efficiency
^ems may be undertaken i n a few years
and typically involve action byasingle
agency
A dvances i n transmi ssi on technol ogy al so
show parti cul ar promi se for i mprovi ng
transmi si on and distribution efficiency
M aj or advances i n el ectron i c control
^ems and di rect current transmission
technology including back-to-back AC/DC
converters are pavi ng the way for operation
and g'id connection of a diverse array of
options on electrical systemSk particularly
renev\ables These technol ogles enable
connection of small generators with inter-
mittent power (for example wi nd) to the
gri d and al I ow i nterconnecti on of gri ds at
different voltage le/ds
A recent and si giif leant trend i n the power
sector is the regional interconnection of
electricity g'ids This ranges from bilateral
arrangements for d ectri ci ty sal es betv\een
two naghboring countries to cooperative
power pool arrangements to full spot-
market and open pools i nvol vi ng SB/eral
countries Power pool sand arrangements are
in place in Europe and in North America.
T hey are now emerg ng i n C entral A meri ca,
parts of South A meri ca, A si a and A f ri ca.
C hi na is i n the process of transform! ng i nto
five regional energy pools under the Elec-
tricity Law ( 1997) and earl y stages of povjer
pool formation are underv\0y i n other parts
of Asia.
In paralld with thetrendtov\ards linking
grids is the rapid expansion of regional
pi pd i ne nd:v\orks - mai nly for gas but also
for oi I . By I i nki ng and therefore expandi ng
power markets these two trends are I i kd y to
i ncreas the abi I ity of al ready i nstal led
capacity to meet demand, i ncrease ^em
operati ng rd i abi I ity and reduce vul nerabi I i -
ty to drou^t in grids with a mix of hydro-
and thermal power. T hese changes wi 1 1
affect the future competitiveness of different
d ectri c power generation technologes
New generation options
Excluding hydro, which represents 19% of
the world's electrical supply all renewable
sources including biomass, wind, solar.
152
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
geothermal, ocean energy sources and co-
generation currently constitute around
1.4-1.6% of generation globally.
Every electricity-generating technology -
including coal, oil, natural gas, nuclear,
biomass, wind, solar, geothermal and ocean
energy - has technology-specific characteris-
tics that make it suitable or unsuitable for
different roles in the system. There are also
technical limits to the amount of power that
any intermittent source (such as hydropow-
er, wind or solar) can supply to the grid
before reliability of supply is affected.
N umerous technical criteria influence the
utility preference for a particular generation
source, especially in terms of the role of the
option in the system (namely, peak, base,
reserve or intermittent power supply). Other
considerations include comparative cost,
reliability, flexibility, efficiency, availability,
experience and familiarity with the technolo-
gy and its operation. Public policy and regula-
tion are also important factors in deciding
technology choices in the power sector
W hile conventional generation technolo-
gies are mature, each is undergoing techno-
logical advances, with manufacturers and
suppliers working to improve efficiency,
reduce costs and construction times, and
minimise emissions and environmental
impacts. In the face of competition and
rapid market change, power utilities and
producers favour proven low-risk options
with short construction times, and prefera-
bly off-the-shelf technologies. Gas-fired
combined cycle systems, which combine
high efficiency and flexibility with a com-
paratively low initial investment cost, have
become the preferred choice where gas is
available. W hen it is not available, the
choice depends on the energy resource base.
Typically the choice would be coal-fired
plant for baseload (40% of generation
globally) and oil-fired gas
turbines for peaking and
standby. N uclear power, which
was the fastest growing source
globally between 1976 and
1996, is faced with high invest-
ment costs, limited public
acceptance, and unresolved
concerns on high-level waste
disposal and decommission-
ing." The outlook for nuclear
pov\er remains hi ^ly contro-
versial, and countries such as
Svveden and Germany have
pi ans to e/entual I y d i mi nate
nuclear generation. The us of
co-generation and combined
heat and pov\er (CHP) facilities
i s growl ng. C H P pi ants provi de space and
vvater heati ng al ong wi th el ectri ci ty i n col d
climate settings with very hi^ efficiencies
With current trends i n power sector reform
and fi nanci ng private de/d opers are
showi ng I i mited i nterest i n large hydropow-
er proj ects except for un i qud y competi ti ve
low-cost sites and medium and srrell high-
head hydropower i n hi I ly and mountai nous
areas with few other energy resources
W i nd power i s the fastest growl ng of the
renewable energy options and is competitive
with other conventional options when a
back- up generati on source i s aval I abl e and
when government support (for example
carbon credi ts for offsetti ng G H G emi s-
sions) is provided as an incentive. Global
annual g'owth in installed capacity of wind
turbi nes averaged 40% between 1994 and
1998." In 2000, installed capacity stood at
more than 13 000 MW in 50 countries
(though this is currently smal I i n terms of
total d ectri cal generation, equivalent to
0.4% of i nstal led ^obal capacity) . Europe
has 70% of the grid-connected wind capaci-
The Report of the World Commission on Dams
153
Chapter 5
Among advanced
technologies in
researct) and
development,
microturbines and fuel
cells show the greatest
near- and mid-term
promise.
ty, N orth A merica about 19% and A sia
about 10%. A bout 45% of the European
wind capacity is installed in Germany
In the last two decades, the cost of wind
power under good wind conditions dropped
by 75%, bringing it within reach of avoided
fuel costs of modern fossil-
fuelled power plants. The
European Wind Energy Assxi-
ation estimates that, fuelled by
further cost reduction resulting
from vol ume producti on, the
i nstal I ati on of new wi nd
capaci ty coul d ri se rapi dl y at
20-30% annual ly so that by
2020 a total of 1.2 ni 1 1 i on M W
of wi nd capacity could be
i nstal I ed worl d- wi de, provi di ng 10% of the
W3rl d's d ectri ci ty.* ' M uch of the future
de/dopment is expected to occur offshore.
The cost of sol ar photovol tai cs ( PV ) has
dropped 80% i n the past two decades and
wi 1 1 need to fal I by a further 50-75% i n
order to be f ul I y competi ti ve wi th coal -f i red
dectridty. Photovoltaic technologies have
reached a ^obal production le/d of 120
MW. Although PV production isexpected
to keep rising thistechnology will not
si gi i f i canti y contri bute to g'i d power
requi rements i n the short term due to hi ^
cost. The long-term potential is considera-
ble, howB/er. A nother renewable technolo-
gy solar thermal ^emSi can already almost
compete with conventional thermal in
settings with hi^ solar insolation levds
I n addition to wind and solar, biomassand
ocean energy ^ems( wave, tidal energy
and ocean thermal) have application for
g'id power. Biomas options are commerdal
where biomassfud is readily aval I able. But
for large-scale appi i cations the extent to
which this potential can be used will depend
on numerous factors such ascompetition for
water and land with other usersj concerns
over the I OSS of bi odi versi ty to pi antati ons
and technologies for bion'Bss conversion to
convenient energy sn/ices Consquently
the greatest potential for biomassisseen in
decentralised local ^ems
A mong advanced technologes i n research
and de/dopment, microturbines and fud
cdlsshowtheg'eatest near- and mid-term
promis. Fud cdlsaredectrochemical
de/icesthat convert hydrogen and oxygen
di rectly i nto dectricity and heat. A number
of companies are currently i nvesti ng signifi-
cant amounts i n fud cd I re^rch and
devdopment (R&D) and expect the con>
merci al i sati on of the technol ogy for us i n
vehidesand in grid and off-grid dectridty
supply by 2005. While natural gas isexpect-
ed to be the mai n source of hydrogen
initially, in the future hydrogen could be
produced at remote hydropov^r sites wi nd
farwB, solar stations and ocean pov\er plants
Electrification in rural areas
In rural areas, dectricity can be supplied
from existing grids under traditional rural
dectrification or from decentralised local
grids. Perhaps the greatest expectation for
change is the deployment of new and
renewable technologies for rural dectrifica-
tion in decentralised mini grids and small
simple devices for households. T here is an
opportunity to leapfrog the distribution
stage and reach some of the 2 billion people
who currently have no access to centralised
electricity grids.
A t the moment, policy-makers generally
prefer centralised electrification options
because the technologies are already proven,
they retain the flexibility to cater for both
urban and rural demand, investment credit
(domestic and fordgn) and established
154
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
credit mechanisms bacl<ed by government
guarantees are available, and the technolo-
gies are accepted by key institutions, such as
planning bodies, utilities, local government
agencies and others. T here are other subjec-
tive reasons in favour of centralised electrifi-
cation including the vested interests of
various groups. Although grid extension will
remain important, it is unlikely that central-
ised approaches will continue to consume
the bulk of the financial resources available
for rural electrification.
Rural electrification based on decentralised
approaches has been taken up by utility
planners for social objectives, but there is a
strong preference i n many areas for commu-
nity-based decisions on the options. Decen-
tralised electrification options are attractive
for a number of reasons:
■ They are simple and flexible waysto
extend energy services to remote areas
that have a low gestation period, may
cost less, and involve low adverse envi-
ronmental impacts. They include simple
household lighting systems and mini-
grids powered by diesel generating sets,
small steam or gas turbines, micro-
hydro units, windmills coupled to
generators, modified engines using
biofuels coupled with generators and
photovoltaic systems.
■ C ommunity-based solar programmes are
gaining momentum and can be used for
rural industry, to meet needs like crop
processing or water pumping and for
household lighting, with a range of
financing mechanisms to recover capital
and operating expenses.
■ Rapid improvements in technology and
organisational learning have made
systems based on renewable energy
increasingly attractive and available.
Some of the key elements of a
rural electrification policy
include:
■ financial support for commu-
nity institutions for owner-
ship and implementation of
technologies based on local
resources or strategies;
■ subsidisation of most aspects
of rural electrification for
meeting cost of delivery or
the inability of low-income
consumers to pay for the
services at cost recovery levels; and
■ consideration of sustainability of any
rural electrification programme to ensure
its success, taking into consideration
economic, environmental and social
aspects.
Obstacles and enabling
conditions
N umerous barriers prevent the rapid spread
of the new renewable technologies and
DSM innovations including: the direct and
hidden subsidies that have been built up
over time for conventional energy technolo-
gies, a lack of commitment from govern-
ments, and the lobbying power of the
conventional energy industry.
Over the life cycle of an energy system, tax
and fiscal policies have an impact on the
competitiveness of each electricity genera-
tion option. Since many developing coun-
tries had access to concessional financing for
capital but not operating costs, hydropower
often had a clear advantage over the longer-
term financing for other options. For emerg-
ing renewable technologies, the cost of
prototypes is high, but dramatic cost reduc-
tions would ensue due to mass production if
the technology were widely accepted.
Rural electrification
based on decentralised
approaches has been
imposed on utility
planners for social
objectives, but there is
a strong preference in
many areas for
community-based
decisions on the
options.
The Report of the World Commission on Dams
155
Chapter 5
Regulatory change has had a major impact
on utility practices, and power sector reform
can create enabling conditions for the
adoption of decentralised and renewable
generation technologies for grid supply. The
reforms will also affect rural electrification.
In many countries, especially in the South,
power sector reforms are extremely contro-
versial. Concerns are raised about the lack
of transparent and accountable regulatory
mechanisms that contribute to corruption as
well as about arrangements that favour
private power producers, impacts on tariffs,
and the consequent hardships for the low-
income population.
G overnments can take several steps to
reduce the barriers to reform of the electrici-
ty sector and the adoption of D SM , supply-
side efficiency measures and non-fossil fuel
based generating technologies
■ In strategic options assessment, it is
important to identify and make transpar-
ent the level and nature of subsidies
through the life-cycle cost of each option
from extraction onwards.
■ Fiscal incentives or subsidies can stimu-
late implementation of emerging tech-
nologies until prices drop enough for
them to be commercially competitive.
■ Tariff policies influence the ability of
utilities to upgrade and improve existing
assets and invest in new supply options
and are currently being used to allow
consumer preference to enter the equa-
tion at the bottom line (for example
European and other initiatives towards
'green' power pricing).
■ In developing countries, where availabil-
ity and cost of electrical services are of
greater concern, tariff blocks that in-
crease as consumption increases and life-
line tariffs for low-income consumers.
cross subsidised by higher income con-
sumers, can expand access.
■ G overnments can also ensure that power
sector reform is founded on a transparent
regulatory framework in which consum-
ers participate.
Water Supply
Domestic, municipal, and industrial con-
sumption accounts for less than one-fifth of
water use worldwide, and only about 5% in
A frica, C entral A merica and A sia. M ajor
shortages occur in developing countries
where more than 1 billion people have no
access to clean water, and supplies are
unreliable for many more. Distribution of
water supplies is also inequitable, with the
urban poor using unreliable and poor-quality
sources and paying excessive amounts to
water vendors. U rban demands are often
given priority over rural demands.
T he issues and options differ between
industrial and developing countries:
■ I n industrial countries, coverage rates are
generally high, demand pressures are
moderate, and the focus is shifting to
reducing consumption and increasing
conservation in order to reduce or defer
development of new supply sources.
■ In developing countries, the low levels of
service coverage coupled with high
demand pressures have focused attention
on new supply sources. Poor performance
of existing water supply systems and
weak management capacity are wide-
spread and a large proportion of urban
poor and disadvantaged communities'
lack access to water supply
Still, the exhaustion of supply sources near
urban centres and deterioration of water
quality are issues of concern across both
developed and developing countries.
156
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
A numberof opportunities exist to meet
various l<inds of water supply needs. I n
developing countries, extending services to
unserved populations in rural and urban
areas and revitalising sources that currently
supply water to urban areas are priorities.
Local resources and strategies may be more
appropriate, effective and affordable in
providing discrete supplies to communities.
I n situations where water needs cannot be
met through local sources, other solutions
are available. Demand-side measures, such
as influencing consumption patterns, are
relevant in industrial countries and among
high-consumption urban water users in
developing countries. N ew sources of supply
are limited, however.
Demand-side management
DSM is gaining widespread acceptance in
many industrial countries. Its potential to
reduce consumption is proportional to the
prevailing level of use. DSM has a high
potential in the U nited States, where
average per capita consumption is about 400
litres per capita per day. Developing coun-
tries generally have low average per capita
consumption rates, yet there is considerable
variation and potential for savings among
high volume users. In N ew Delhi, for
example, daily family use for those sup-
plied with piped water ranges from 700
litres for low-income families to 2 200
litres for affluent families." Tariffs are
heavily subsidised, with little incentive for
conservation.
Washi ng and sanitation are heavy usrs of
water in domestic and commercial sttings
Institutional standards regulations and
sanctions are necessary to promote v\0ter-
effi dent technologies including regulatory
standards for appi i ance and equi pment
man ufacturers and subsi di es to consumers to
retrofi t water-savi ng de/i ces I n
Denmark, per capita consump-
tion dropped 24% over 10 years
due to widespread adoption of
water-effi ci ent technol ogi es
including toilets showers and
washing machines*'
I n many I ocati ons i ncl udi ng
the U nited States South Africa
and Europe, block tariff structures with low
I i fd i ne tari ffs and progress! vd y ri si ng rates
for high I e/ds of consumption have been
successful i n control I i ng or reduci ng water
demand. For these to be effective an effi-
ci ent yet cheap system of v\ater meteri ng i s
essential.
A significant proportion of hi^-quality
domestic water is usd i n conventional
sewerage ^ems to transport waste and
treat it although coverage varies Hov\€ver,
i n J apan conventi onal sewer-
age covers onl y 39% of the
population, compared with
80% in Europe." A numberof
low-cost and alternative
sanitation ^emsthat have
I ow water requi rements are
available, such as offset pit
I atri nes and septi c tan ks used
i n parts of South A merica. I n
India, 10 million people usa
tv\o-pit pour flush toilet, which
has the potenti al of repi i cati on
on a large scale."
In many locations,
including the United
States, South Africa and
Europe, block tariff
structures with low
lifeline tariffs and
progressively rising
rates for high levels of
consumption have been
successful in controling
or reducing water
demand.
Community management of
water supply ^ems has a positive i mpact
on both coverage and efficiency This
^em vjorks best when usi ng di screte v\ater
sources in rural and urban areas and it can
reduce demand for external water resources
For example, in Bwera, Uganda, a commu-
nity manages a I arge-scal e ^em where a
The Report of the World Commission on Dams
157
Chapter 5
gravity-flow water supply serves over 60 000
people.^i
Education and inforn^ion are key elements
i n a I ong-term commitment to more effi -
dent usof v\0ter. Priority areas include
rai si ng avvareness aboutefficienttechnolo-
gesand practices financial incentives and
savi ngs meteri ng, and the rationale under-
lyi ng any new tariff structures
Supply-side alternatives
The loss of water from leakage, illegal
connections, and measurement problems is
high. In A sian cities, thiscan amount to
35-40%, with individual cities reaching as
h i gh as 60% . " Stabi I i si ng and reduci ng
I osses from pi ped ^ems can hd p extend
servi ces For exampi e, fi gures i n the U ni ted
Ki ngdom suggest a 29 1 itre per capita per day
decrease i n ^em I oss as a resul t of manda-
tory I eakage targeti ng set by the regul atory
authori ty Proposal s for a new dam i n
Yorkshi re v\ere deferred by i ntroduci ng a
leakage reduction programme and other
conservation measures" To succeed,
leakage reduction programmes requi re
strong institutional capacity and regulation
to enforce standards Reduci ng ^em-
operati ng pressure may offer a rd ati vdy
simpleinitial step to reduce I eakage.
Rainvvater harvesting through rooftops
tanks and other methods are an alternative
source of domesti c v\ater suppi y M aj or rural
supply initiatives in Gansu, China and in
Box 5.6 Rainwater harvesting is spreading to urban areas
In Germany subsidies are available to encourage households to construct
rainwater tanks and seepage wells. Due to savings in monthly water charges and
other concessions, investments are paid back in 12 years. In ) apan, 70% of the
facilities in Tokyo's Ryogoku Kokugkan sumo wrestling arena are supplied by
stored rainwater
Sources: Gould, 1999, Contributing PaperforWCD Thematic Review IV.3
Water Supply: Down to Earth, 1998, p23
northeast T hai I and are typi cal of the
i ncreasi ng number of traditional rai nv\ater
harvesti ng technologies that have been
upgraded to provide affordable and sustai na-
blesupplies" With the rising cost of
conventional water supply rooftop catch-
ment ^ems are spreadi ng i n A rgenti na,
Barbados Brazil, Costa Rica, Dominican
Republic, Chile, Mexico and Peru." Rain-
water harvesti ng is not restricted to rural
areas (see Box 5.6); it is also used by mi I-
I i ons of resi dents on the peri pheri es of new
cities I ikethos in Tegucigalpa, Honduras
A rd ated measure for i ncreasi ng v\0ter
suppI y i n rural areas i s the pi acement of
arti fi ci al arrays i n areas of h i gh fog densi ty
to capture cloud moisture.
In places with short, intensive rainy seasons
much of the rai nwater runs off al ready
saturated surfaces Even minorearthv\orks
such as contour bunds and desi Iti ng exi sti ng
vi 1 1 age ponds can i ncrease short-term above-
surface storage enabi i ng i nfi I trati on to occur
over a I onger peri od of ti me. W here sub-
surface storage i s aval I abl e these methods
can rai se the water tabi e and n^ke g'ound-
water aval I abl e I onger i nto the dry season .
InChennai, India, the metropolitan water
suppI y uti I i ty tackl ed the probi ems of
groundwater depletion and seav\0ter i ntru-
sion through a conservation- based strategy
A sri es of check dams i ncreasd groundv\a-
terle/ds by 5-10 meters" Theswere
supplemented by control son private water
extraction and compulsory rainwater
harvesti ng for new bui Idi ngs
As previously discussd in thischapter,
maintenance of natural vegetation can have
i mportant effects i n terms of i mprovi ng
water qual i ty but wi th vari abl e effects on
water supply I n South Africa, the Working
for Water prog"amme i n the Western C ape
regon supports the eradication of alien
158
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
vegetation, thereby enabling tlie restoration
of tlie indigenous fynbos vegetation. Fynbos
provides less cover and vegetative mass and
thus the programme aimsto provide both
employment and water yield gains. Efforts
by N ew York and N ew J ersey to purchase
and protect the Sterl i ng Forest from de/d-
opment brou^t renewed attention to the
water qual ity benefits of forest n^nagement
around si ngle- purpose faci I i ties near urban
areas Sterl i ng Forest protects a catchment
that provi des a sri es of reservoi rs that
supply water to more than 2 million peo-
ple." I n the latter cdse, catchment manage-
ment saves to avoi d the need to i nvest i n
water treatment faci I i ti es or, i n the extreme
c3Ee, new supply SDurces Such options are
highly location specific.
T he recycl i ng of wastewater can be another
significant source of supply By 1999,
enou^ v\0ter was recycled in the BayArea
of California to meet the needsof 2 million
peopi e. T he target there i s to i ncrease
capaci ty to save 6 mi 1 1 i on peopI e by 2020.' '
A g"i culture u^ 32% of the recycled water,
27% went to groundwater recharge, 17%
supported landscape irrigation, 7% went to
i ndustry and the remai nder for envi ron men-
tal and other uses
Desalination contributesto water supply in
120 countries^ with 60% of the 11 000
desal i nati on pi ants bei ng I ocated i n the
water-scarce M iddle East. Though costs of
desalination have been reduced dramatical-
ly theyarestill hi^ and the technique is
very energy intensive." Meaningful poten-
tial exists but a major technology break-
th rou^ i s requi red to i ncrease desal i nati on's
gl obal contri buti on si gn i fi canti y
I nter- basi n transfer of water i s often offered
as a sdI uti on to I ocal water scarci ty T he
i mparts of such transfers requi re careful
scrutiny particularly as there will be no
return flows within the basin as would occur
with other abstractions A s noted above,
v\0ter can be transferred from agricultural
usethrou^ alternative and more proactive
programmes such as water trading, that
effectively cros-fi nance water efficiency
gai ns i n i rri gated agri cul ture.
Enabling conditions
A s with the other sectors, a
commitment to policy, institu-
tional and management reform is
essential to implement demand-
side management of water
supplies and alternative supply
approaches Initiatives include
the following:
■ In the U nited Kingdom,
U nited States and A ustralia,
regulations mandate explora-
tion of all economically
justifiable demand-manage-
ment initiatives before a
licence for new abstraction is
granted.
■ M anagement efficiency is
fundamental to conservation and im-
proved planning. N o single public or
private management approach is appro-
priate for all contexts. Stronger institu-
tional capacity and accountability are
required to improve the performance of
public agencies.
■ Effective regulatory mechanisms need to
be in place to safeguard access and
affordable cost of water for the urban and
rural poor.
M eeting the needs of those currently not
served in both urban and rural areas is a
priority and requires concerted efforts. It
requires an appropriate mix of demand-side
Meeting the needs of
those currently not
served in both urban
and rural areas is a
priority and requires
concerted efforts. It
requires an appropriate
mix of demand-side
management measures
to enhance water use
efficiency and reduce
wasteful consumption,
increases in supply
efficiency and the
development of new
supply sources.
The Report of the World Commission on Dams
159
Chapter 5
management measures to enhance water use
efficiency and reduce wasteful consumption,
increases in supply efficiency and the
development of new supply sources. I n the
latter case, due consideration is required to
non-conventional alternatives such as
reducing conveyance losses, rainwater
harvesting, catchment management and
water recycling.
Integrated Flood
Management
Floodsdiffer widely in their nature, in the
characteristics of the affected floodplains,
and in their implications. A s documented in
earlier chapters, in some contexts millions
of people are dependent on annual floods for
their livelihood, whilein others similar
floods threaten life and property A number
of options have emerged to predict, manage
and respond to floods and at the same time
obtain the most socially beneficial and
economically sustainable outcomes. Institu-
tional and policy support is needed to
achieve integrated flood management,
which consists of flood alleviation and
utililisation, mitigation and risk manage-
ment rather than a strict reliance on struc-
tural flood control based on dykes, levees
and dams.
Floods are a complex phenomenon, and the
success of flood intervention strategies
depends on a number of factors. C hapter 2
considered the performance of dams as a
structural response to flood control and
highlighted the basis for concerns and the
shift towards flood management as an
approach in place of flood control. Vulnera-
bility to flood events determined by charac-
teristics of the population and land-use
systems at risk and their capacity to cope
and recover, are key issues in flood manage-
ment strategies. A bsolute flood control may
be neither achievable nor desirable. T he
more appropriate objective is to predict,
manage, and respond to the flood situation
in order to prevent widespread losses and
obtain the best outcome in each situation.
Following major destructive flood events in
the last few decades, significant changes in
flood policy have occurred around the
world, redefining interventions to some
extent. For example,
■ coastal flooding of 1953 led to the Delta
works in the N etherlands;
■ the 1988-89 floods in Bangladesh led to
the Flood A ction Plan and the N ational
Water M anagement Plan; and
■ the U pper M ississippi floods of 1993, the
Rhonefloodsin 1993, the 1997 floods in
the Rhine and the 1998 flood in China
drew attention to the role of non-
structural catchment measures.
Intervention strategies in flood management
have gradually shifted from a focus on
structural responses to flood control to
introducing or expanding the role of non-
structural responses as part of integrated
strategies for floodplain management.
This secti on I ooks at the strategi es and
opti ons aval I abl e for i ntegrated f I ood
management and control . These strategies
consi St of th ree broadi y compi ementary
approaches namely;
■ reducing the scale of flood through a
number of structural and non-structural
means;
■ isolating threats through structural,
technological and policy alternatives; and
■ increasing people's capacity to cope
effectively with floods.
A s with the role of large dams, associated
structural measures and the relationship
160
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
Table 5.1: Complementary approaches to flood
management
Reducing the scale
1 solating the threat
1 ncreasing people' s
of floods
of floods
coping capacity
■
Better catchment
■ Flood embanl<ments ■ Emergency planning
management
■ Flood proofing
■ Forecasting
■ Controlling runoff
■ Limiting floodplain
■ Warnings
■
Detention basins
development
■ Evacuation
■
Dams
■ Compensation
■
Protecting wetlands
■ Insurance
Stream uses should be consid-
ered. In assessing the likely
effectiveness of source control ^
pre-flood conditions (such as
froEn or saturated ground) nxist
be considered.
between floods and natural floodplains have
been discussed in earlier chapters, and
therefore the focus here is on alternative
measures for flood management.
Reducing the scale of floods
Reducing the scale of floods implies manag-
ing the quantity and quality of surface water
runoff. Catchment management measures
include:
■ infiltration measures, such as infiltration
trenches, detention basins, infiltration
ponds, retention ponds and wetland
areas to reduce runoff; and
■ forest protection, reduced impact logging
practi ces, avoi dan ce of cl ear fel I i n g
techniques and less intensive agricultural
practices to reduce soil erosion and
landslides that lead to channel siltation,
raising flood levels proportionately.
Small-scale storage of runoff and improve-
ments in drainage are other approaches to
flood mitigation, particularly at the local level.
Check and warping dams (built for erosion
control) can lead to groundwater recharge and
store initial quantities of run-off during storm
events. Wire mesh dams are also used for this
purpose in the highlands of Trinidad where
the mesh traps water-borne debris during flash
floods, blocking much of the flow."
I f afforestati on i s consi dered as part of a
packet of measures> i ts effects on the f ul I
range of hydrological function and down-
Fl ood fl ows can be stored i n the
lowland^ as detention basins are
normal I y dry except when requi red for fl ood
storage. In SDmecases^ lakes on rivers can be
used, such as the Dongting lake in H unan
provi nee i n C hi na. Traditional tank ^ems
in flood-prone villagesofMadhubani district,
in Bihar, India, are usd for flooclv\ater diver-
si on and storage' ^ N atural v\etl ands are al so
i mportant a^ts for fl ood storage and agi cul -
tural fields can be usd for micro-storage."
Isolating the threat of floods
A long with dam^ earthen embankmentSi
leveeSi dykes and bunds have been the
dominant flood-control option in most of
the world. One key characteristic of this
option is that it interferes with natural
drai nage patterns i n the area protected. This
area may still be flooded from local precipi-
tati on, wi th mi nor tri butari es causi ng I ocal
fl oodi ng, i n I and fl oodi ng or drai nage con-
gestion. I n the absnce of adequate drai n-
age, the protected area wi 1 1 suffer crop loss
due to waterl ogg ng.' ^ Si gni fi cant morpho-
I ogi cal changes can occur fol I owi ng the
construction of embankments> as sdi menta-
tion of channel sand bank erosion lead to
rai ffid river beds and the need for e/en
hi^er le/dsof protection (as noted in
Chapter 2).
Structures such as dwel I i n^ way be modifi ed
i n a vari ety of ways to reduce the ri ^ of
floodwater penetration: waterproofing wall 5
fitting openings with perrrBnentorterrporary
door^ ^e^ or other dosurede/ice? fitting
one- v\ay vai ves on swer I i ne? or bui I di ng
The Report of the World Commission on Dams
161
Chapter 5
boundary walls around the house structure.
Other possible measures include sump-pumps
that begin operating in basements when water
levels rise, and contingency plans and facilities
designed to be operated when a flood is
anticipated. Contingent flood proofing
depends upon a reliable flood warning sys-
tem.™ ThisapproachalsDindudesraising
clv\el ling pi aces For example, intheflocxiplain
Icampungs (traditional villages) of Malaysia,
houses are built on stilts to raise them above
anticipated flood levels. Similar adaptations to
floods are found throughout Southeast A sia
along rivers, estuaries and coastlines.
Increasing people's coping
capacities
New integrated approaches for flood allevia-
tion, mitigation and flood risk management
emphasise:
■ integrated catchment and coastal zone
management, and wise planning and use
of floodplainsand coastal zones;
■ empowering local communities to make
choices about land development and
flood alleviation;
■ reducing the impacts of humans on the
environment by promoting flood disaster
resilience (see Box 5.7);
■ valuing and preserving the best of
indigenous adaptations and improving
local capacities to respond; and
■ addressing problems of equity (for
example alleviating poverty and lack of
Box 5.7 Flood resilience
'Resilience' may be taken as the opposite of vulnerability and may be enhanced
by promoting access to knowledge and resources achieved through develop-
ment processes and poverty reduction programmes. Alternatively, traditional
social and cultural systems may enable resilience. The vulnerability of poor, rural
Malaysians to floods in eastern Peninsular M alaysia is reduced by close kinship
systems that exist in the floodplain villages.
Source: WCD Thematic Review IV.4
Flood Control, Section 4,2; Malaysia in Chan, 1995
access to resources as a means of address-
ing flood vulnerability). "
Emergency planni ng and n^nagement has
thrsphass preparedne^ respond and
recovery Thecapacity of individuals hous-
holds gioups and communities to cope vvith
fl oodi ng depends upon thei r knovvl edge,
resDurces organisation and pov\er:
■ their knowledge about how to identify that
a flood threatens, how to mitigate effects of
floods, what to do before, during and after
a flood, the causes of flooding and appro-
priate mitigation measures;
■ the resources at their command, includ-
ing their skills and physical assets, and
the support of others that they can call
upon; and
■ the extent of their organisation, includ-
ing within households, within neigh-
bourhood groups, and within whole
communities, as a way of pooling knowl-
edge, skills, resources, and planning and
co-ordinating activities to achieve
optimum use and power in relation to
other groups in society.
A flood management strategy will need to
cover flood warnings, flood mitigation, any
necessary evacuation and post-flood recov-
ery A clear commitment by national or
federal governments to the emergency
planning and management process will
enhance its effectiveness.
Enabling conditions
Enabling conditionsthat will promote an
integrated approach to flood management
include:
■ Promoting public involvement and
devolution of decision-making to the
lowest possible level enables integrated
catchment management. T his is essential
as integrated flood management strate-
162
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
giesat catchment level are most appro-
priate to local conditions.
■ Funding should have a multi-functional
approach. Integrated management of the
catchment will increasingly result in
multi-functional options being adopted.
■ I nstitutional design is critical to the
success of a flood hazard management
policy, and co-ordination across various
institutions has been a crucial factor.
■ Flood hazard management and emergen-
cy response agencies have a key role in
enhancing local communities' coping
capacities by involving them in decision-
making on all matters relating to floods.
The overriding message is that local owner-
ship of flood alleviation strategies and
options is necessary for long-term success.
Findings and Lessons
T his chapter has examined the options for
fulfilling energy water and food needs in
today's circumstances and the barriers and
enabling conditions that determine choice
or adoption of particular options. M any
options currently exist - including demand-
side management, supply efficiency and new
supply options. These can all improve or
expand water and energy services and meet
evolving development needs across all
segments of society. A n overview of options
for all the sectors covered suggests the
following general findings and lessons:
■ Demand-side management options
include reduced consumption, recycling
and technological and policy options
that promote water and power efficiency
at the point of end-use. DSM has signifi-
cant untapped and universal potential
and provides a major opportunity to
reduce water stress as well as achieve
other benefits such as the reduction of
greenhouse gas emissions.
■ I mproving system management can defer
the need for new sources of supply by
enhancing supply and conveyance
efficiency. N eedless loss of power and
water can be avoided through reductions
in water leakages, improving system
maintenance and upgrading control,
transmission and distribution technology
in the power sector.
■ Basin and catchment management
through vegetative and structural meas-
ures offers an opportunity across all
sectors to reduce sedimentation of
reservoirs and canals and manage the
timing and quantity of peak, seasonal
and annual flows, as well as groundwater
recharge. T he multi-functional nature of
the hydrological system; the types and
importance of downstream uses of water;
and the on-site costs and benefits of the
measures themselves will determine the
attractiveness of different interventions.
■ A numberof supply options have
emerged that are locally and environ-
mentally appropriate, economically
viable and acceptable to the public,
including water recycling, rainwater
harvesting and wind and solar (off-grid)
power.
The ability of various options to meet
existing and future needs or to replace
conventional supplies depends on the
specific context, but in general they offer
significant potential individually and
collectively. M ore specifically the different
sectoral alternatives are as follows:
■ In the irrigation and agriculture sector,
preference is for improving the perform-
ance and productivity of existing irriga-
tion systems and alternative supply-side
measures that involve rain fed, as well as
local, small-scale and traditional water
management and harvesting systems
including groundwater recharge methods.
The Report of the World Commission on Dams
163
Chapter 5
T he priority for achieving a sustainable
and equitable global energy sector is for all
societies to increase the efficiency of
energy use and the use of renewable
sources. High-consumption societies must
also reduce their use of fossil fuels. Decen-
tralised, small-scale options based on local
renewable sources offer the greatest near-
term and possibly long-term potential in
rural areas.
In the water supply sector, meeting the
needs of those currently not sen/ed in both
urban and rural areas through a range of
efficient supply options is the priority
Further efforts to revitalise existing sources,
introduce appropriate pricing strategies,
encourage fair and sustainable water
marketing and transfers, recycling and
reuse, and local strategies such as rainwater
harvesting also have great potential.
In the case of floods, as absolute flood
control may be neither achievable nor
desirable, it is necessary to manage floods
to minimise flood damage and maximise
ecological benefits. A n integrated ap-
proach to flood management will involve
reducing a community's vulnerability to
floods through structural, non-structural,
technological and policy alternatives, and
increasing people's capacity to cope with
floods.
N umerous market, policy institutional,
intellectual and regulatory barriers hinder the
emergence and widespread application of an
appropriate mix of options in response to
needs in the power and water sectors. T he
barriers to be overcome include capacity and
resource constraints, the dominance of
conventional approaches and interests in
development planning, a lack of awareness
and experience with non-conventional
alternatives, inadequate access to capital and a
lack of openness in the planning system.
These are further analysed in the next chapter.
W hile they are context-specific, hidden
subsidies and other incentives to conventional
options may limit the use and rate of adoption
of even superior alternatives. To better enable
the selection and use ofthe broader range of
options will require that options are compre-
hensively and fairly evaluated by all stakehold-
ers throughout the planning, decision-making,
and financing process.
Endnotes
1 Sources are cited in the sections below only
when they do not appear in these Thematic
Reviews or where it is otherwise necessary for
clarity.
2 Postel, 1999, p41; FA OSTAT, 1998.
3 W CD Thematic Review IV. 2 Irrigation
Options, Section 1.3.
4 Bosch and Hewlett, 1982.
5 Bruijnzeel, 1990.
6 Postel, 1999, p93.
7 W CD Thematic Review IV. 2 Irrigation
Options, Section 4.3.4.
8 Huasham et al, 1995 in W CD Thematic
Review IV. 2 Irrigation Options, A nnex 8.
9 Mitchell, 1995, in WCD Thematic Review
IV. 2 Irrigation Options, pll8.
10 Murray-Rustand VanderVelde, 1994.
11 OED,1990, p4.
12 FAO, 1995, p280.
13 WCD India Country Study, Section 3.3.1.
14 FAO op cit, p233.
15 FAO, op cit.
16 Seckler, 1996.
17 Cornish, 1998, p20.
164
Dams and Development: A New Framework for Decision-Making
0 ptions for Water and Energy Resources Development
18 Cornish, op cit.
19 Frausto, 1999, Contributing Paper for W CD
Thematic Review IV. 2 Irrigation Options, pl8.
20 FAO et al, 1999.
21 Vermillion, 1997.
22 WCD India Country Study, Section 3.3.6;
Vermillion, op cit.
23 Bandaragoda, 1999; VanderVelde and Tirmizi,
1999.
24 Brehm and Quiroz, 1995; H earne and Easter,
1995 cited in H earne and Trava, 1997.
25 WCD Thematic Review IV. 2 Irrigation
Options, Section 3.4.1.
26 A grawal and N arain, 1997; Thakkar, 1999,
C ontributing Paper for W CD Thematic
Review IV. 2 Irrigation Options.
27 Frausto, op cit.
28 WCD India Country Study; A grawal and
N arain, op cit; Barrow, 1999.
29 Ringler et al, 1999, plO.
30 A grawal and N arain, op cit.
31 WCD Thematic Review IV. 2 Irrigation
Options, Annex 1.
32 A creman et al, 1999, Contributing Paper for
WCD Thematic Review II. 1 Ecosystems.
33 WCD Thematic Review IV. 2 Irrigation
Options, Annex 5.
34 WCD Thematic Review IV. 2 Irrigation
Options, Annex 6.
35 Shevah, 1999 in WCD Thematic Review IV. 2
Irrigation Options, Section 4.3.2.
36 DFID,2000.
37 FAO, op cit, p234.
38 M inistry of Water Resources and Electric
Power, PRC, 1987, cited in Postel, 1999, p56.
39 N ational Research Council, 1996, cited in
Postel, 1999, p77.
40 Thakker, op cit.
41 Dhawan, 1998, cited in WCD Thematic
Review IV. 2 Irrigation Options; M olden et al,
1998.
42 WCD Thematic Review IV. 2 Irrigation
Options, Section 3.2.3.
43 A DB, 1999c.
44 Smith, 2000, Contributing Paper for W CD
Thematic Review IV. 2, pl7, 30.
45 UNDP etal, 2000.
46 Flavin, 1999, Contributing Paper for W CD
Thematic Review IV. 1 Electricity Options,
A nnex H ; Economist, 5 A ugust 2000.
47 IEA,2000.
48 UNDP etal, 2000.
49 UNDP etal, 2000.
50 Rumsey and Flanigan, 1995; Worrell, 1999
working draft.
51 UNDP 2000, Chapter 6 pi.
52 Santetal, 1999 eco013, W CD Submission.
53 lEA, 1998 and balancesofnon-OECD
countries.
54 Kowalski and Schuster, 2000, pl65.
55 WCD Thematic Review IV. 1 Electricity
Options, Section 3.4.
56 EW EA , 1999, C ontributing Paper for W C D
Thematic Review IV.l Electricity Options,
A nnex H .
57 WCD Thematic Review IV. 3 Water Supply
Options, Section 6.5
58 White etal, 1999, eco018, WCD Submission,
p9.
59 Lane, 1999, Contributing Paper for W CD
Thematic Review IV. 3 Water Supply Options.
60 WCD Thematic Review IV.l Electricity
Options, Section 2.4.2.
61 WCD Thematic Review IV.l Electricity
Options, Section 3.12.
62 Mcintosh and Yniguez, 1997, cited in WCD
Thematic Review IV. 3 Water Supply Options,
A nnex 1.
63 Yorkshire Water, 1997, eco082 W CD Submis-
sion A 7.1.
64 Gould, 1999, op cit.
65 Ringler et al, 1999, plO.
66 SA N DRP, 1999 opt080, WCD Submission, p20.
67 Preston, 1999. Contributing Paper for W CD
Thematic Review IV. 3 Water Supply Options.
68 Stapleton, 1996, p2-5.
69 Dickinson, 1999, Contributing Paper for WCD
Thematic Review IV.3 Water Supply Options.
70 C osts range from $1.50-5.00 per cubic metre.
71 WCD Thematic Review IV. 4 Flood M anage-
ment Options, Section 1.2.3.
72 WCD Thematic Review IV. 4 Flood M anage-
ment Options, Section 4.4.2.
73 W CD India Country Study A nnex 5.
74 Delaney 1995 in WCD Thematic Review IV. 4
Flood M anagement Options, Section 4.4.2.
75 WCD Thematic Review IV. 4 Flood M anage-
ment Options, Section 4.4.5.
76 WCD Thematic Review IV. 4 Flood M anage-
ment Options, Section 4.4.
77 WCD Thematic Review IV.4 Flood M anage-
ment Options, Section 1.2.4.
The Report of the World Commission on Dams
165
Chapter 6:
Decision-Making, Planning and
Compliance
The pr&/ious chapters suggest
that the main challenge for
water and energy resource d&/elopers
in the 21st century will be to
improve options assessment and the
performance of existing assets T his
will require open, accountable and
comprehensive planning and decision-
making procedures for assessing and
selecting from the available options 1 1
also calls for monitoring programmes,
evaluation procedures and incentive
mechanisms that ensure compliance
with project commitments especially
in the area of environmental and social
performance To do this we need a
Chapter 6
Once a proposed dam
project passed
preliminary teclinical
and economic feasibiiity
tests and attracted
interest from
government or external
financing agencies and
poiiticai interests, the
momentum beh/nd the
project often prevailed
over furtlier
assessments.
better understanding of why large dams were
proposed and developed, and why failures in
performance and impacts on ecosystems and
affected people are still not properly
accounted for, monitored or
resolved. This chapter draws on
theWCD Knowledge Base to
characterise the critical problems
encountered in the past, analyse
their underlying causes and
chronicle recent developments
that point the way forward, this
is explored in the remainder of
the report.
Asa development choice, large
dams often became a focal point
for the interests of politicians,
dominant and centralised govern-
ment agencies, international
financing agencies and the dam-building
industry. Involvement from civil society varied
with the degree of debate and open political
discourse in a country. H owever, there has
been a generalised failure to recognise affected
people and empower them to participate in
the decision-making process.
0 nee a proposed dam project passed prelim-
inary technical and economic feasibility
tests and attracted interest from government
or external financing agencies and political
interests, the momentum behind the project
often prevailed over further assessments. In
any event project planning and appraisal for
large dams was confined primarily to techni-
cal parameters and the narrow application of
economic cost/benefit analyses. H istorically
social and environmental impacts were left
outside the assessment framework and the
role of impact assessments in project selec-
tion remains marginal even in the 1990s.
The influence of vested interests in the
decision-making process and the narrow,
technical approach to planning and evalua-
tion have meant that many dams were not
built based on an objective assessment and
evaluation of the economic, social and
environmental criteria that apply in today's
context.
C onflicts over dams have heightened in the
last two decades. This results from dissatis-
faction with the social and environmental
impacts of dams, and their failure to achieve
targets for costs and benefits. It also stems
from the failure of dam proponents and
financing agencies to fulfil commitments
made, observe statutory regulations and
abide by internal guidelines. In some cases,
the opportunity for corruption provided by
dams as large-scale infrastructure projects
further distorted decision-making, planning
and implementation. W hereas substantial
improvements in policies, legal require-
ments and assessment guidelines have
occurred, particularly in the 1990s, it
appears that business is often conducted as
usual when it comes to actual planning and
decision-making. Further, past conflicts
remain largely unresolved due to a number
of reasons, including the poor experience
with appeals, dispute resolution and recourse
mechanisms.
The key to improved performance in the
future lies in screening out undesirable dams
projects as part of a process that considers
the full range of options for water and
energy power services, and responds posi-
tively to changing priorities. T hese efforts
must find ways to ensure that performance
in living up to existing institutional arrange-
ments governing the planning and project
cycle is improved.
T he chapter groups these topics under three
headings: decision-making, planning and
compliance.
168
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
Decision-making and the
Political Economy of Large
Dams
Large dams arise from a series of decisions
taken from the beginning of the planning
process through to the final approval of a
project and financial closure. At each stage
different actors are involved, including
government agencies, public or private
utilities, interested parties from the region,
financing agencies, consulting and construc-
tion companies and equipment suppliers.
A ffected people and N G 0 s are increasingly
involved as well, often through people's
movements against dams. Each of these groups
promotes its own self-interest throughout the
process, ranging from profits and political
power to property rights and livelihoods. This
section looks at the interplay of these forces in
the context of rivers, dams and the develop-
ment of water and energy resources.
Similar pictures emerge for the industrial-
ised and the developing worlds. Planning
processes are controlled by single- purpose
government agencies or public utilities and
the decision to build is taken as the outcome
of a fairly limited set of political interactions
at political levels commensurate with the
size and importance of the dam. In the case
of developing countries, the selection of
alternatives for meeting water and electric
power needs was, and is, frequently con-
strained by preferential access to interna-
tional finance and the pre-existing interna-
tional expertise in large dams rather than
alternatives. Recently restructuring and
reform of the energy and water sectors in
many countries - both industrialised and
developing - has changed the role of gov-
ernment in decision-making and planning,
with private investors and corporations
taking both financing and ownership roles
in these projects.
State-led decision-making
G overnments were the proponents for
practically all large dams and many large
dams were built by government agencies
themselves.^ Centralisd agencies or utilities
hcN/e traditi onal ly mana^ the v«ter and
energy sctor vvithi n government. Li ke nxst
majorde/dopment projects decision-n^ing
process around I arge dams have been
central isd and technocrati c i n vi rtual ly al I
parts of the v«Dr1d, particularly thnou^ the
1970s T he excepti on be certai n I arge
dams bui 1 1 as part of reg onal de/d oprrent
projectsvvhere local political interests have
played important rolesin promoting projects -
often i n conj unction with thd r represnta-
tives i n central gDvemment.
I ndeed, the degree to which decision-
maki ng surroundi ng a dam was pol iticised
and the levd at which the decision was
made varied tremendously with the project.
Large and spectacul ar dams have often been
seen as symbol s of devd opment and nati on
building a potent demonstration of man's
abi I i ty to harness nature's forces and a
tang bl e 'dd i verabi e' for pol i ti ci ans usual I y
funded from the public purse. TheWCD Cas
Studi es derronstrate that for very I arge dams
the deci si on to bui I d often was taken by heads
of State, whereassmallerfacilitiesv\ere
typi cal I y gui ded th rou^ the proces by the
rde/ant agendesor uti lities (se Box 6.1)
Dam-building in industrialised
countries
In industrialised countries, alliances be-
tween local political interests and powerful,
single- interest agencies and utilities respon-
sible for water and power development
drove planning and decision-making on
large dams In the U nited States, the
political desire to settle and develop the
land and resourcesof the western states
The Report of the World Commission on Dams
169
Chapter 6
encouraged the construction of large dams.
A t the same time, however, laws governed
the planning and approval process. T hey
required agencies and utilities to perform a
long series of surveys, hold public hearings,
and conduct inter-agency reviews, including
cost-benefit analysis The appropriation of
funds ultimately required approval by the
Box 6.1 WCD Case Studies: political decisions to build large dams
From the WCD Case Studies, the predominant role of the State can be seen
throughout. In the Glomma and Laagen Basin the N orwegian government was
active in licensing hydropower projects initially to promote development in
isolated river valleys, then to feed power based smelting industries and other
heavy industries in the period afterthe Second World War Hydropower
development was also promoted to support specific distncts in penods of
depression and high unemployment.
Similar government intervention is demonstrated at the Grand Coulee project in
the United States where a presidential decision was made to proceed with the
Grand Coulee project in 1932. The project formed part of the federal govern-
ment's campaign to bring the country out of economic depression, provide
construction jobs to eight thousand people, reclaim land for irrigation and
reduce price manipulation by pnvate powercompanies, thereby malting publicly
generated electricity more widely available at low cost.
The planning, implementation and initial operation of the Kariba project was
done by the Inter- Terntonal Power Commission of the then Central Afncan
Federation (the former colonies of N orthern and Southern Rhodesia now Zambia
and Zimbabwe) in the 1940s, The priority was to deliver powerto the copper
industry owned by multi-national corporations,
0 n the Orange River in South Africa, the proposal to build a major dam and
water diversions scheme was called for by Pnme M mister Hendnk Verwoerd
following the Sharpeville massacre in 1960 that undermined confidence in the
government and led to outflows of foreign capital. One primary motivation was
to demonstrate national capacity to build major projects and to restore
international confidence in the country's development and investment potential.
Source: WCD Case Studies
Congress, which further scrutinised the
project plan. 2
Outsidethe U nited States> the reconstruc-
tion of Europe after World War II led to the
construction of n^ny large dams. T he
Marshall Plan ushered in the era of foreign
ai d wi th the transfer of $17 bi 1 1 i on to hd p
rebuild Europe.^
D uri ng the col d vvar era, central i sed, state-
driven consolidation of resDurces through
i nten/enti ons such as the bui I di ng of I arge
dams v\as the hal I mark of comnxini st
regmes. Most of the political and economic
deci si on- maki ng proceses for the I arge dams
bui It i n eastern and central Europe v\ere
top-down and technocratic. Besides the
central government, other stakeholders and
the general publ i c v\ere not i n a posi ti on to
express thei r concerns or represent thei r
i nterests i n the deci si on- maki ng process.'
Dam-building in developing
countries
T he success of the M arshal I pi an i n E urope
I ed to great opti mi sm that the key to nati on-
al development vvas i nvestment i n capital
stock. The I nternational Bank for Recon-
struction and De/dopment (I BRD), created
to hd p fi nance the reconstructi on of v\ar-
torn European countries became a focal
poi nt for these efforts and, al ongsi de bi I ater-
al de/dopment banks> hdped export the
modd of central isd nation bui I ding for
economic de/dopment. Damsfitvvdl vvith
this modd of fordgn aid and v\ere often the
firstvisiblesignof IBRD (later called the
World Bank) presence in a country.*
Role of foreign assistance^
Both the nxiiti lateral and bilateral de/dop-
ment ban ks pi ayed a si gi i fi cant faci I i tati ng
rolein gettingAsia, Africa and Latin
170
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
A merica started in the dam business. The
World Bank began financing large dams in the
1950s, committing on average over $1 billion
per year to this purpose (Figure 6.1). For the
period from 1970 to 1985 this amount had
risen to $2 billion per year. A dding in finance
by the A si an, Inter-A merican, and African
Development Banks, as well as bilateral
funding for hydropower, suggests total financ-
ing for large dams from these sources of more
than $4 billion annually at the peak of lending
during 1975-84.
Bilateral and multilateral development
financing agencies have helped finance
studies needed for dam construction, and
lent money for the construction of the
dams themselves. They identified develop-
ment goals through strategic sectoral
planning documents, provided resources
and technological capacity to conduct
feasibility studies, and created basin-wide
institutional frameworks to plan and
implement dams. A Ithough the proportion
of investment in dams directly financed by
bi laterals and multi laterals was perhaps less
than 15%, these institutions played a key
strategic role globally in spreading the
technology lending legitimacy to emerging
dam projects, training future engineers and
government agencies, and leading financing
arrangements.^
T he extent and nature of this i nfl uence
varied from country to country and from
reg on to reg on . T he I ndi a C as Study
locates the orientation of I ndian planners
and eng neers tov\ards dams as the pri nci -
pal response to vvater resource devd op-
ment in the 1950s and 1960s when large
n umbers of dams v\aie first built. This
predated the World Bank's major involve-
ment in India. The Bank be^n I ending in
earnest to I ndi a i n the 1970s at a ti me vvhen
pol i cy refbmis removed restri cti ons on the
ability of individual statesto directly access
fbreigi assistance and provided incentivesfor
doing 90.
Si nee then World Bank loans to I ndi a have
doubled or tri pled each decade. By one
esti mate I oans for i rri gati on, drai nage and
flood control are 14% of World Bank loans
to I ndi a." T he I ndi a C as Study reports
that, in total, foreign assistance provides
about 13% of publ i c sector outi ays i n the
irrigation sector, with the World Bank
G roup accounti ng for al most 80% of thi s
asi stance. Thus in I ndi a the World Bank
did not provide the initial impetus behind
Figure 6.1 Development assistance for large dams, 1950-1999
25
20
□ World Bank* □ Bilateral' □ IDB^
□ ADB" ■ AfDB° ■ EBRD'
Source: 'SklarandMcCully, 1994eoo029, WCD Subrhsa on and World Bank,
2000; 'OECD, 2000^ IDB, 1999; 'Lagrm, 2000; 'A1DB, 1998; 'EBRD,
1996, 1999, 2000a, 2000b.
N ctes Data for bilateral abides also indudes Unandngby the C orrrrission of
the E uropean C orrmunity and indudes only all hyctopcwer investmmts from
1975 to 1997.
The Report of the World Commission on Dams
171
Chapter 6
the tendency to choose dams as the response
to water and energy needs, but rather
provided continued and increasing external
bacl<ing to the large number of dams which
were built from the 1970s onwards.
A sin the case of India, theWCD China
C ase Study shows that dam building was
well advanced prior to the entry of foreign
donors. Brazil also follows this pattern.
Comparison of statistics on large hydropow-
er dams commissioned in Brazil between
1950 and 1970 and the finance provided by
the World Bank and the Inter-A merican
Development Bank (IDB) show that just
over 10% of the 79 large dams listed in the
International Commission On Large Dams
(ICO LD) database received financial
assistance from these donors. H owever, the
figure rises to over 30% of the 47 dams for
the 1970-1990 period. Foreign assistance,
thus, did not drive the selection of dams as
an option but did provide significant fi-
nance during peak dam-building periods.
The picture differs for smaller countries. In
C olombia, multilaterals helped fund the first
large dam and 40% of the subsequent 50
large dams appearing in the ICOLD data-
base. M ultilaterals have played a particularly
strong role in countries that have not built
many dams and do not have local planning
and construction expertise and capacity In
Costa Rica, which relies on hydropowerfor
roughly 90% of its power generation, the
World Bank and IDB had directly supported
over half of the installed hydropower capacity
by the mid-1990s.^ In Tanzania, bilateral
ancles and the World Bank ha^e supported
e^nti ally all the large hydropov\er dams" In
these smal I er countri es the rol e of fi nanci ng
agenci es and the fi rms they empi oy to
undertake preparatory studies design
projects and build dams can be significant.
Only in the late 1980s and early 1990s has
this lendi ng activity tai led off i n the face of
i ncreasi ng publ i c scruti ny and cri ti ci sm by
civil society (see Figure 6.1). The decline
followed unfavourable independent re/iews
of tv\o h i ^ profi I e proj ects that were
supported or considered by the World Bank
- Sardar Sarovar i n I ndi a and A run 1 1 1 in
N epal . A number of other factors contri but-
ed to the shift away from I arge dam proj ects
They include:
■ continued criticism of the pervasive
'approval culture' of the World Bank and
its willingness to promote large infra-
structure projects;
■ internal evaluationsof the Bank that
documented ever- in creasing 'appraisal
optimism' despite evidence of poor
economic and financial performance by
projects in the water supply and irriga-
tion sectors;
■ failure to meet the Bank's poverty
alleviation goals; and
■ growing recognition of the severity of the
social and environmental impacts of
dams."
More recently a gradual shift towards an
i ncreasd role for private sector fi nance i n
hydropower and, to a lesser extent, water
suppi y have al so I ed the ban ks to move i nto
a facilitation role with theemphasison
publ ic- private partnershi ps and risk guaran-
tees Part of the f i nanci ng has now been
taken over by export credit guarantee
agenci es i n donor countri es that fi nance and
underwrite risks taken by home-country
engi neeri ng f i rms and equi pment suppI i ers
parti ci pati ng i n proj ects abroad.
Role of industry and bilateral
funding
U Itimately it isthe country government
that is responsible for taking the decision to
172
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
build a dam. However, governments are
naturally influenced by international
expertise and financing opportunities (see
Box 6.2). Once a government is politically
committed and construction has begun, the
nature of large construction projects makes
it extremely hard to change course, even if
there are cost overruns, unforeseen negative
impacts, or benefits are less than predicted.
The public purse generally carries the risk of
poor economic performance, and there has
historically been no consequence or liability
for building under-performing dam projects.
For industrialised countries with a history of
dam-building and expertise in related
equipment, bilateral overseas aid has often
become a vehicle for supporting local
industry by exporting this expertise through
aid programs tied to the purchase of services
or equipment from the donor country.^^
C onfl i cts of i nterest have i ne/itably resulted
betv\een the fi nanci ng agency's i nterest to
provi de contracts for home-country compa-
nies and the borrov\er or g'ant reel pient's
i nterest i n provi di ng appropri ate and
affordabi e devd opment. I n the case of
bi I ateral agenci es these confl i cts of i nterest
nnay be exacerbated i n srrel I er, poorer
countri es where the donor pi ays a more
central rol e i n fi nanci al matters (see Box
6.3).
Professional associations such as I COLD,
the I nternati onal H ydropower A ssoci ati on
(I HA) and the I nternati onal Commission
on Irrigation and Drainage (I CI D) have also
pi ayed an i mportant rol e i n setti ng standards
within their technical disciplines and
promoti ng professional capacity related to
the bui I di ng of I arge dams and thei r asaxi -
ated i nfrastnxture. T hese are i nternati onal
as93ciations made up of members from
government and industry from industrialised
and de/d opi ng countri es al i ke. T he associ -
ati ons pi ay an i mportant rol e i n bui I di ng
capaci ty of member countri es by col I ecti ng
and diseminating technical and other
information and holding annual meetings to
promote formal and informal professional
exchange.
Decision-making on sliared
rivers
T he flow of water through States or prov-
inces sharing a basin links them inextricably
to a finite and common resource (see Box
6.4). Yet water resources and energy plan-
ning has frequently been undertaken at the
level of administrative or political units that
do not coincide with the watershed. Asa
Box 6.2 WCD Case Studies and submissions: foreign involvement in
dam projects
While the WCD Case Study dams built m the United States and N orway relied
exclusively on national capacity the Case Study dams in developing countnes
reveal the involvement of foreign firms in master plans, inventories, feasibility
studies, design, construction and financing. In the case of Tarbela the Wodd
Bankeven co-ordinated the Indus Water Treaty signed between India and
Palcistan that gave Pakistan the opportunity to build Tarbela.
n Turkey the comprehensive development of the water resources in Ceyhan
Basin was outlined first in a 1955 study by a foreign consulting firm financed by
the United States Agency for International Development (USAID). This docu-
ment has guided investments in the basin for the last thirty-five years. The US
Bureau of Reclamation, through USAID, undertook the initial study of the water
resources of the Tocantins Basin in 1964, where Tucurui was later iDuilt. For the
Pak M un project in Thailand, French engineering firms conducted the initial
feasibility studies in the 1970's and early 1980s.
n all, the World Bank provided financing forfourof the Case Study dams
(Kariba, Tarbela, Aslantas and Pak M un). Kanba was partially financed by the
copper companies for which much of the power was destined. The decision of
multi-national aluminium producers to invest in the Carajas region of Amazonia
was subject to the decision to proceed with the Tucurui hydropower complex.
Financing for the project came from internal sources and French banks.
A recent N GO report provides details on the role of 12 European companies in
the design, construction and supplyofequipmentto 84 large dams, manyof
them major dams in developing countries. The report also lists the further
involvement of these companies in technical studies of a larger sample of dams.
M any of the projects listed are financed by home-country bilateral agencies,
export credit agencies and commercial banks, as well as by the multilateral
development banks. The report documents the billions of dollars that have gone
to the European 'dam building' industry from projects in developing countnes.
Source: WCD Case Studies and Lang et al, 2000
eco041, WCD Submission
The Report of the World Commission on Dams
173
Box 6.3 N ordic influence in tlie Pangani Falls Redevelopment Project,
Tanzania
A 1985 Canadian study provided Tanzania witli a national energy development
pian tiiat led to tiie decision to redevelop tlie old Pangani dam, raising its
instailed capacity from 17 M Ws to 66 M Ws, The Finnisii International Develop-
ment Agency (FIN N IDA) funded the $2,5 million feasibility study in 1989-90,
which was carried out by Finnish and N orwegian consultancy firms. Given the
close relationship between the Finnish firm and FIN N IDA, the firm not only
wrote the terms of reference for the feasibility study but later was also given
contracts to procure supplies and supervise construction (jointly with its
Norwegian partner). In the event, the feasibility study confirmed that the dam
was the best option to meet sector needs and the EIA concluded that no
adverse effects existed that would prejudice the project.
As the Finnish, Swedish (SIDA) and N orwegian (N 0 RAD) aid donors planned to
finance the project, SIDA hired a Swedish firm which reviewed and confirmed
the results of the feasibility study The three N ordic donors subsequently
approved grants to Tanzania to coverthe costs of the project. While the aid was
not 'tied', no competitive bidding was undertaken for contracts, rather, checks
were made to ensure that pnces offered by selected firms were competitive. A
Norwegian firm supplied the turbines, a Swedish firm the generators and contro
equipment and a number of Finnish firms were involved in the civil works and
transmission lines, including the parent company of the consultancy firm that
undertook the feasibility study
While the final 1991 project document stated that the hydrological risks to the
project were small, there was sufficient concern over the availability of water
supply to the project to make the N ordic donors insist on a water basin
management board as a condition of the funding agreement. This decision has
engendered conflicts between local, national and donor interests. The water
board was to institute water fees to limit irrigation withdrawals and ensure an
adequate supply of water for power generation at Pangani, With work underway
n the eariy 1990s concern mounted as precipitation in the basin and flows at the
site fell well below the 1981-92 averages. This was compounded by a lack of
nformation on the extent of upstream withdrawals which fed traditional
smallholderagriculture bythe Chagga people on the slopes of Mount Kiliman-
jaro, as well as a series of large-scale projects financed by other internationa
donors.
The political repercussions of charging smallholders in order to limit their water
use so that electricity could be generated for consumption by industry and
urban households soon manifested themselves. By 1994 resistance to the board
was evident in local opposition to the tanffs. As it turns out smallholder
irngation bythe Chagga is a well-studied example of a centuries-old traditional
system for the management of common propert:y- replete with a local water
management 'board.' This Council of Furrow Elders is formed by elders of a
specialised clan - the Wakomfongo - that plan and direct the construction of
furrows as well as co-ordinate water distribution and maintenance of the furrows.
Along with elders of other clans the Council administers the furrow system and
resolves any problems that anse.
The potential for negative effects on the food secunty of traditional farmers as a
result of the tanffs imposed bythe official water board was acknowledged in
further studies in 1995 by the original authors of the feasibility study Yet the
plan to transfer political control over water from local to centralised authonty
went ahead, laying the foundation forfuture struggles between the local people
and the Tanzanian utility that operates the dam. The water board, which must
mediate in this regard, is constituted by five government representatives and
three representatives from each of the regions traversed bythe Pangani nver
No provisions were made for representation of the Chagga or other traditional
water users on this board. The result is that N ordic development assistance had
the paradoxical effect of undermining local resource management.
Source: M ung'ong'o, 1997; Usher, 1997a, eco026, WCD Submission
means of water storage, dams play an
important role in the management of the
resource and its allocation to different uses
within and between countries. In the
context of shared rivers, dams are a technol-
ogy that allows an upstream riparian to
partially 'privatise' the river by storing and
using water and thereby effectively exclud-
ing downstream riparians from access to the
water In the downstream context, when
faced with dwindling supplies from up-
stream, dams provide downstream riparians
with a practical means of replacing lost dry
season flows by storing wet season flows.
Relative power relationships within basins
determine to a large extent how individual
countries interact and whether other
riparians are consulted concerning dam
projects. A regional power that holds an
upstream position is in a better situation to
implement projects without consultation,
and this has been the case in Turkey, India
and C hina. I n other cases powerful down-
stream neighbours whose existing resource
Box 6.4 Co-operation in shared river basins
As shown in Chapter 1, a significant proporiiion of the
worid's rivers cross international boundaries. In
addition to these International basins, there are many
others that cross provincial or state boundaries within
a country where these states have a mandate to
manage water resources. Examples include India,
Australia and the United States.
Co-operation between ripanan states is not new.
Since AD 805 approximately 3 600 water related
treaties were signed between nations. Although the
majority of these relate to navigation and nationa
boundaries, approximately 300 are non-navigational
and cover issues related to water quantity water
quality and hydropower Of these, many are limited to
relatively narrow aspects and do not extend principles
for integrated resource management throughout the
basin. As pressure on resource use intensifies, an
increase in conflicts over water may be expected and
greaterco-operation will be required
Source: WCD Thematic Review V,3 River Basins
174
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
base may be affected by water resource
development upstream may hold the devel-
opment plans of upstream States in check.
T his has been the case historically for
example, with Egypt and Ethiopia."
I n rreny cases^ one of the key obstaci es to
reachi ng i nternational agreements lay i n
I ooki ng at vvater as a f i ni te commodi ty and
tryi ng to al I ocate i t on a proporti onal basi s
to different uss in different countries I n
cass of vvater scarcity this approach often
does not give the flexibility needed to meet
the mul ti pi e cl ai ms al ong the ri ver course.
I n these ci rcumstances it has proved hd pful
to extend shari ng ag'eements to i ncl ude the
benefits generated bythevvater. Thedivi-
si on of benef i ts under the 1968 C ol umbi a
Treaty betv\een Canada and the U nited
States on the Col umbi a River reported by
theGrand Coulee Case Study is a case in
point.
A rrangements for vvater shari ng at provi n-
cial le/d are facilitated by the ability of the
federal government to i mpose overarchi ng
regulatoryframeworkSi finandal incentives
and sandiionsto ensure that provinces
col I aborate. A si mil ar supra- nati onal body i s
often I acki ng betvveen nati ons and the most
transparent deci si on- n^ki ng on i nternati on-
al ri vers therefore I i es wi th i n the frameworks
of the many i nternati onal protocol s and
agreements that clearly layout the planning
stages at vvhich information should be
exchanged and consultation occur. Efforts to
establish accepted international prindples
have been negotiated through the U N for
over 25 years I eadi ng e/entual I y to the U N
C onventi on on the Law of N on- N avi gabi e
U s of I nternational Watercourss H ov\ever
it looks unlikdythat the Convention will
enter i nto force due to the rd udiance of
States to ratify it.
Thissituation leavesa number of key
i nternati onal ri vers I acki ng a basi n- wi de
ag'eement that defi nes a process for estab-
I i sh i ng equi tabi e water use and therefore
with no framework for good faith negotia-
tions with other riparian States I n the
absnce of such ag'eements some States
have taken unilateral adiion, continuing to
bui I d dams vvi thout adequate i nforn^i on
exchange or consideration for i mpacts
dsewherein the basin. Whilethismay
constitute di sregard for emergi ng i nterna-
tional pradii ce and the standards govern i ng
peaceful rdati ons between riparians italsD
reflects the political economy of the up-
stream-downstream rd ati onshi p. A s I ong as
the pol i ti cal and economi c costs of engagi ng
in such behaviour are small rdati veto the
economi c benefi ts gai ned there i s I i ttl e
i ncenti ve to engage i n col I ecti ve di scussi on .
C I earl y as the demand for water ri ses and
becomes e/er more scarce, dams bui It on
these i nternati onal ri vers are I i kd y to
i ncreasi n^ y affect regi onal rd ati ons
Planning and Evaluation
In general project planning and evaluation
for large dams has been confined primarily
to technical parameters and the narrow
application of economic cost-benefit analy-
ses. Decisions of this nature were typically
taken with little participation or transparen-
cy. I n particular, those to be negativdy
affected by a dam were (and are) rardy
involved in this process.
The primary concern with planning process-
es is that once a proposed dam project has
survived preliminary technical and econom-
ic feasibility tests and attracted interest from
financing agencies and political interests,
the momentum behind the project and the
need to meet the expectations raised often
The Report of the World Commission on Dams
175
Chapter 6
A number of key
international rivers /acic a
basin-wide agreennent
that defines a process for
establist)ing equitable
water use between
riparian States.
prevail over further assess-
ments. Environmental and
social concerns are often
ignored and the role of impact
assessments in selecting op-
tions remains marginal. Once
operations have been initiated
there is a generalised lack of
effort to monitor, assess and
respond to operational concerns and chang-
ing values surrounding dams. A gain, the
political economy of large dams and the
dominant power of a small number of actors
often drive these planning and evaluation
processes. I n some cases, such as N orway,
Quebec, Brazil or Nepal, a high level political
choice made in favour of hydropower has
driven subsequent choice of technology (large
dams) and project development.
Participation and transparency
TheWCD Knowledge Base shows that the
most unsatisfactory social outcomes of past
Figure 6.2 Trends In provisions for participation and information
disclosure
Global sub-sample: 105 dams
% of dams
Yearfrom start of commercial operation
(by decade)
— Information disclosure
Participation of affected people
Source: WCD C ross-C heck Survey.
dam projects are linked to cases where
affected people played no role in the plan-
ning process, or even in selecting the place
ortermsof their resettlement. In addition,
governments have frequently committed
themselves unquestioningly to large infra-
structure projects, whose merits have not
been tested by public scrutiny, without
hearing alternative views on the choice of
development objectives for a village, region
or country A s pointed out in C hapter 4, the
involvement of displaced people has the
advantage of enabling them to contribute to
the benefit stream of a project and thus to
achieve different outcomes.
Participation and transparency in decision-
making processes involving large dams-
again like most development projects - was
neither open nor inclusive through the
1980s. 0 f the 34 dams in the C ross-C heck
Survey that involved resettlement of dis-
placed people, only 7 required participation
as part of the decision-making process.
W hile there has been a growing emphasis
on transparency and participation in deci-
sion-making involving large dams, especially
in the 1990s, actual change in practice
remains slow.
A dditional results from the C ross-C heck
Survey illustrate that while participation has
increasingly been required in the planning
documents of large dams and for various
activities, around 50% of projects still do
not plan for the public participation of
affected people. T he trend for requirements
for transparency through information
disclosure for large dam projects is similar to
that for public participation (see Figure 6.2).
T he C ommission's review identified the
following recurring concerns and criticisms
about how the public, and particularly
affected people, have been involved:"
176
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
Box 6.5 Even late participation leads to a consensus resettlement
plan: Salto Caixas dam, Brazil
■ Insufficient time, resources and informa-
tion have been made available for public
consultations;
■ the spectrum of participants was usually
very narrow, ignoring rural communities,
indigenous groups and women, and
affected people's organisations whose
effective participation may be constrained
both culturally and linguistically;
■ where opportunities for participation of
affected peoples and N G Os representing
affected groups have been provided, they
often occur late in the process and are
limited in scope. M oreover where
substantial differences arise, those
seeking to modify plans and decisions
often must resort to legal or other action
outside the normal planning process;
■ there was a generalised failure to involve
affected people in the design and imple-
mentation of project monitoring and
follow-up; and
■ the government agency staff leading the
discussions had often been trained only
in one sector (such as engineering) and
this reduced the scope for promoting a
multi-disciplinary approach.
From the experiences recorded in the W C D
Knowledge Base there are recent examples
that show where participation has reduced
conflict and made outcomes more publicly
acceptable (see Box 6.5 and Box 6.6). These
contrast starkly with those where projects
have been pushed through by central authori-
ties without consultation resulting in drawn-
out and acrimonious conflicts over compensa-
tion, resettlement and benefit sharing.
The failure to provide a transparent process
that includes effective participation has
prevented affected people from playing an
active role in debating the project and its
alternatives. Asa result they are unable to
The 1 240 M W Salto Caixas hydropower project in Brazil was completed in 1999
and was the fifth to be built on the Iguacu River. It was the first hydropower
project in Brazil planned underthe environmental regulations stipulated in the
1988 Constitution, The measures taken to comply with the new environmenta
legislation at Salto Caixas amounted to about one-quarter of the total project
cost of approximately $1 billion. However, the ElA was only undertaken afterthe
project was approved and land had been acquired, putting political pressure on
the process. This resulted in an ElA study of 'poor quality'
0 n the social side, public pressure, based in part on unsatisfactory resettlement
outcomes for previous dams, led to the establishment of a 'resettlement
committee'. This committee created a forum to address conflicts and meet
requests of the affected people. A negotiation process involved the committee
of affected people in developing an acceptable relocation programme for
displaced people. Views of local people were also Incorporated into the
monitonng stages of the project.
Source: dos Santos, 1999, pl53-154;
Verocai, 1999, Contnbuting Paperfor WCD Thematic Review V.2
Environmental and Social Assessment, p7
Box 6.6 Public participation and project acceptance: three scenarios
from Austria
n the early 1980s, nine multi-purpose dams had already been built in the
Austnan section of the Danube River Two more dams, Freudenau in Vienna,
Hainburg downstream, were planned on the mam nverand some low-head
projects envisaged on the M ur nver
and
The decision to build the Hainburg hydropower and navigation dam was made
explicit in 1983. Public participation was restncted to holders of property and
water rights to be directly affected by the planned intervention, thus excluding
environmental activist groups and other civil society organisations. With strong
support from the general public, these civil society groups occupied the site of
the project, and ultimately managed to stop the project. Subsequently the site
was protected as a N ational Park.
Turning to the Freudenau hydropower dam, from 1986 to 1988, the provincia
government of Vienna and the power utility promoted ideas and proposals for
mitigating some of the potential impacts of the project (during construction and
after completion). The public responded with great interest and as a result
selected proposals and the detailed project plans were made fully accessible to
the public. Information meetings on these documents were attended by more
than 15 000 people. In 1991 a referendum was organised around the final project
proposal. About 44% of the entitled Vienna inhabitants participated, and 75%
supported the project.
The Freudenau dam was completed in 1997, howeverthe project is not cost-
effective as a consequence of the design modifications required to gain public
support. The contrary was the case for the Fisching and Friesach projects on the
M ur river - where following occupation of the dam site by protesters, joint-
planning sessions with stakeholders led to 'significant improvements in
environmental fnendliness,' with associated cost savings.
Source: Hainburg and Freudenau dams
in Nachtnebel, 2000, pl09-lll:
Zinke, 1999, p6-9;
Fisching and Fnesach dams
in Brunold and Kratochwill, 1999, pl76-17
The Report of the World Commission on Dams
177
Chapter 6
assist project planners to provide a develop-
ment response that meets their needs and
allows them to add to the benefits to be
derived from the project. W ithout doubt this
has magnified the negative impacts of such
projects and alienated affected communities
leading to active opposition to projects and
considerable uncertainty for project propo-
nents As observed in previous chapters of this
report, the outcome is often not only poor
performance of the social components of
projects but also schedule delays, cost overruns
and poor financial and economic performance.
Options assessment
T he range, scale and type of options consid-
ered in development plans in the past were
limited by the boundaries of the planning
and decision-making approaches of the day.
M any sectoral planning studies from which
projects emerged were narrow technical and
economic studies, aimed at least-cost supply
solutions for providing a single service such
as irrigation water or electric power. W hen
dams were contrasted with alternatives, they
were typically only compared to other
potential dam projects or, in the case of
hydropower, with alternative large-scale
thermal power generation options (see Table
6.1). In developing countries the pressure on
development aid agencies to move large
amounts of capital - a considerable portion
of it as tied aid - argued for large-scale
solutions such as large dams. Administrative
efficiency is a related factor leading to a
preference for financing large projects.
Table 6.1 WCD Case Studies: options assessment
Project
A Iternatives considered in preliminary planning
Comparison with
alternatives at appraisal
C riteria and parameters used for selection
Aslantas
Existing run of river source for irrigation was considered
insufficient to support wider agriculture development.
Alternative dam locations in the basin considered.
The hydropower
component was compared
with a thermal
alternative.
Least-cost analysis for power supply.
Grand Coulee
The agreed objective was regional development through irrigated agriculture.
A Iternatives considered over a 15-year period related to gravity and pumped systems
for the delivery of water. The 1932 Butler Report recommended the pumped option
financed predominantly by hydropower revenues from the dam.
Economic analysis
Glomma and
Laagen Basin
Government policy for hydropower established in early
1900s. Oil and gas discovered in early 1980s, but
hydropower policy remained in place until recently.
A Iternative hydropower
sites considered.
Least cost and environmental and social
ranl<ing of sites in the 1980s protection and
development plans.
Kariba
Kafue Gorge in North Rhodesia considered as an
alternative but rejected after protracted debate with
Southern Rhodesia.
A set of thermal power
alternatives
Least-cost analysis for power and influence
of South Rhodesia' s political interest.
Orange River
Reservoir storage was seen as the only way to achieve more reliable water supply for
year round irrigation. H ydropower was a secondary benefit therefore thermal
alternatives were not considered. Subsequent studiesled to raising the VanderKloof
dam to increase output.
Political
Pal< |V| un
Thermal alternatives located elsewhere considered. A
higher dam option was rejected due to resettlement and
environmental concerns. The revised project approved
by the Cabinet included irrigation benefits.
A Iternative thermal
power (gas turbine).
Least cost analysis and power system
studies.
Tarbela
A dditional storage was considered the only option for
replacing water of the eastern rivers allocated to India.
A number of alternative
dams sites including
Kalabagh and Gariala
Economic comparison of the sites combined
with Government preference for larger
storage and power potential of Tarbela
Tucurui
Tucurui responded to objectives for development of the mining-metallurgical sector and to supply power to urban areas in the
A mazon Region. There was no explicit options assessment
Source: WCD Case Studies
178
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
Projections of demand
T he needs for power food and water are
typically identified through sectoral demand
forecasts, which have frequently overstated
sectoral needs. TheWCD Glomma and
Laagen Case Study reports that in Norway
gross power consumption in 1990 was 75%
of that forecast in 1970. In Slovakia, water
supply needs as assessed in 1985 were
expected to rise to 408 and 465 litres per
capita per day (led) in 1990 and 2000
respectively While demand initially rose
above projections (433 in 1990) it has since
reversed course and had fallen to 294 led by
1997.15
Fai I ure to adequate! y account for the rate of
development of new supply and the effect of
policy reform, when it is outside the limits
of the planning exercise, may also lead to
what effectively amounts to overstated
demand. I n the Slovakia case cited above, a
doubl i ng i n the pri ce of water and the
development of alternative sources of supply
by i ndustry contri buted to reduci ng actual
demand. Proj ecti ons for demand ( and
hence pri ces) for crops and other ag^i cul tur-
al productsthat are widely traded can be
subj ect to nBrket boom and bust cy:l es when
a seri es of i ndependent deci si ons i n di fferent
countries or provi nces lead to over-produc-
tion relative to derrand. As documented in
C hapter 2 the pri ces for ag^i cultural com
modi ti es have fal I en over ti me, i nstead of
remai ni ng constant or ri si ng as assumed i n
many proj ecti ons for i rri gati on proj ects The
same market information, technical assist-
ance packages or consultants frequently
influence these planning exerciseSi thus
whi le difficult to foreae, such over-esti-
mates are not i ne/i tabi e.
Overstati ng future demand has led to a
perceived need for a large i ncremental
response to meet rapidly g'owi ng needs I n
many ci rcumstances thi s has mil i tated
agai nst a gradual approach of adopti ng
srraller, non-structural options and has
pushed deci si on- makers i nto adopti ng I arge-
scal e dam proj ects because they seem to be
the only adequate respond to the large gap
between existi ng supply and forecast de-
mand. A further complication isthe long-
lead ti me of large dam projectSi which may
take 10 years or more from i n i ti al de/d op-
ment of a proj ect i dea to the commi sa on i ng
of the structure. C hanges i n market condi -
ti ons during construct! on have I eft propo-
nents stranded with costs or proj ects that
are not f i nanci al I y or economi cal I y vi abl e.
Of principal concern isthat it isfrequently
the agenci es that are responsi bl e for bui I di ng
supply i nfrastructure that are also charged
with undertaki ng demand forecasts^ leading
to a potent! al confl ! ct of ! nterest.
Available options
A s shown in C hapter 5 there is currently a
wide range of alternatives available for
fulfilling water and energy needs, although
the actual number available will depend on
local circumstances. T he number of alterna-
tives has, however not always been so large.
For instance, alternatives to hydropower
prior to the 1950s included conventional
fossil fuel and biomass generation options.
N uclear power arrived in the 1960s and in
the past decade the range and scale of
renewable electricity supply options has
dramatically expanded. A Item atives for
municipal and industrial water supply have
tended to be site specific and depend on
whether there are groundwater aquifers,
natural lakes and rivers to draw from with
sufficient quantity and quality of water 0 n
the other hand, many of the irrigation water
supply and flood management options that
are being considered today have been
available for a long time. T he principal
change here is a more receptive policy
The Report of the World Commission on Dams
179
Chapter 6
context and the increasing cost of develop-
ing new water supplies.
Demand-side management options (DSM )
are a more recent phenomenon. Efficiency
and conservation became concepts in policy
and planning in the 1970s and 1980s, but
serious attention to demand management
programmes has tended to depend on a
perception of crisis. T he oil price shocks in
the early 1970s focused attention on DSM
in the electricity sector in many western
countries. W ater scarcity and the threat of
water shortages is a driving force for more
efficient water use in many countries, but
the response has not been universally
translated into concrete action in fostering
water-efficient practices.
Obstacles to consideration of
options
Political economy or intellectual barriers
often pre-determined what options were
considered in a given context. Political
economy barriers include efforts made by
groups, primarily those holding economic
control and political influence, to protect
their own interests and to impede similar
efforts by other stakeholders. I n practice,
these barriers were immensely varied and
wide-ranging. They included soft and subtle
actions such as withholding information
necessary for making informed decisions
from other stakeholders and from the
decision-makers. A t the other end of the
spectrum there have been overt and even
violent measures such as use of State and
police power to protect favoured options.
W ith few exceptions, an inclusive institu-
tional and policy structure capable of
dealing with a spectrum of options has been
slow to emerge in developing countries.
Small-scale infrastructure alternatives often
have not received integrated planning
support, impeding their ability to emerge as
competitive solutions. Interests promoting
non-structural alternatives have rarely
offered an adequate political counterbalance
to interests promoting a dam option. In
many cases the weight given to the infra-
structure option by the key actors obstructed
proper consideration of other viable alterna-
tives. Asa result, such options continue to
be viewed as secondary to large projects.
China provides an example of a country that
has mixed both the small- and the large-scale.
It has the world's largest programme for the
development of small-scale rural and appropri-
ate technology while at the same time it has
built half the world's large dams.
T he hindsight provided by C hapters 2, 3
and 4, however, does suggest that in cases
where dams have failed to deliver or led to
large negative social and environmental
impacts, a more comprehensive assessment
of options may have been warranted.
W h ether failures to adequately assess all
options implicitly lead to the selection of a
dam over other equally attractive or even
superior options is difficult, if not impossible,
to answer. Certainly the options currently
available (as described in Chapters) reflect
not only continued technological develop-
ment over the last 50 years, but also are a
product of more recent efforts to find locally
appropriate, small-scale solutionsthat have
benign social and environmental impacts.
T hus, in many cases alternatives may not have
been available previously and may have
appeared more expensive given the methodol-
ogies employed at the time, or were excluded
due to the influence of vested interests.
Parameters for project
appraisaP^
C ost-benefit analysis (C BA ) emerged
between the 1950s and 1970s as the domi-
nant economic tool supporting decision-
making on dam projects. I nitially it was
180
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
limited to a number of parameters, most of
them internal to the dam owner and rela-
tively easy to assign values to. Efforts in the
last two decades to expand the scope of C BA
to cover social and environmental issues have
rarely led to comprehensive social and envi-
ronmental valuation, and have usually been
limited to incorporating the costs of resettle-
ment and environmental mitigation.
Review of multilateral bank appraisals and
the performance of C BA more generally
leads to thefollowing conclusionson the
adequacy of C BA as applied to the appraisal
of large dam projects:
■ projections of project costs are systemati-
cally understated;
■ social and environmental impacts are
not valued explicitly or are only indirect-
ly accounted for through mitigation or
resettlement budgets;
■ difficulty in predicting inter-annual
volatility of hydrological flows, growth in
demand and final design capacity (hydro-
power, irrigation and other benefits);
■ difficulty in predicting market conditions
and farmer behaviour over time (irriga-
tion benefits);
■ employing social discount rates that are
too high;
■ sensitivity and risk analysis is inade-
quate; and
■ the effect of uncertainty and irreversibili-
ty of investment is ignored.
I n other words, the historical and actual
practice of dam project appraisal often
violates the conditions under which it
could, in theory, provide a reliable measure
of the change in economic welfare produced
by a dam project. It is worth emphasising
that it is not a foregone conclusion that the
net effect of fixing all of these problems
would be to lower the economic profitability
of dams. A numberof the weaknesses of
CBA may lead to understatements of the
net project benefits A t the same time, it is
clear that quite a number of the weaknesses
can have important impacts in terms of
lowering net project benefits. Improved
application of C BA would assist in identifying
projects that are not economically viable.
Over reliance on CBA and the implicit
pursuit of economic welfare maximisation
also handicap decision-making where dams
have other (or additional) objectives as:
■ CBA does not examine wider economic
impacts - such as economic multiplier
impacts; and
■ CBA does not explicitly identify who
gains and who loses from a project.
A Ithough C BA is typically a prerequisite to
the analysis of macroeconomic and regional
impacts, as well as to distributional analysis,
it is not designed to examine the potential
of a project to achieve objectives in these
areas. G iven the continued 'partial' ability
of C BA to capture even the extent to which
efficiency objectives are achieved, and given
that equity, macroeconomic and purely non-
economic objectives are often integral
objectives of water resource development
projects, C BA alone is not a sufficient basis
for the evaluation of large dam projects.
Influences from the larger political economy
also filter through into the process of
undertaking C BA . In some cases, early
political or institutional commitment to a
project became overriding factors, leading
subsequent economic analyses to justify a
decision that had in fact already been taken.
Decisions made to build dams solely on the
basis of such an analysis are questionable
The Report of the World Commission on Dams
181
Chapter 6
given the failure to undertal<e
options assessment and to
include external impacts,
particularly social and envi-
ronmental costs. A n alterna-
tive approach to a decision
support system based on C BA
is to use a method that
recognises that projects often
have multiple objectives and
not simply economic welfare maximisation.
Experience to date with these multi-criteria
approaches suggest that while economic
criteria remain important, these decision
frameworks have the benefit of allowing
disaggregated information on social and
environmental impacts to enter directly into
the decision analysis. Such decision support
systems appear particularly appropriate and
useful in the case of large dams when
implemented within a participatory, trans-
parent multi-stakeholder approach.
Addressing social and
environmental impacts^^
Social and environmental issues have
historically been among the least addressed
concerns in dam-related decision-making.
The Commission hasfocussed on these
because they are two of the key issues that
determine whether a dam proves to bean
effective development project that enjoys
general acceptance by the public. The
environmental risks associated with large
dam projects have not been generally
incorporated as key factors in the decision-
making process. Enforcement of existing
regulations is often weak, initial assessment
has not been comprehensive and it has
frequently been incorrectly assumed that
impacts could be effectively mitigated (see
C hapter 3). G enerally, monitoring of
impacts and assessments of the effectiveness
of environmental mitigation measures have
been absent.
Similarly the adverse social implications of
large dam projects have rarely been a factor
in the initial assessment and therefore have
not generally influenced the decision-
making process to reach a least social cost
alternative. T he experiences of affected
people around the world as reviewed in
C hapter 4 confirm the extent to which
impacts remain inadequately assessed and
efforts at mitigation, development and
resettlement unsatisfactory
Following the U nited N ations C onference
on the H uman Environment held in Stock-
holm in 1972, environmental agencies and
ministries were formed at a rapid rate with
approximately 60 being created by 1988 and
at least another 40 by 1992. T he W orld
Bank adopted its first dam-related policy in
1977 (on dam safety). During the 1980s the
Bank developed policies and guidelines that
focused on the social and environmental
dimensions of dams and water resources.
Environmental Impact A ssessment (EIA )
was adopted and formalised in many coun-
tries during the 1980s, although many
developing countries only approved EIA
legislation in the 1990s. EIA has become
the major tool for addressing social and
environmental impacts and the C ommission
has reviewed an extensive literature on this
subject as well as hearing directly from those
affected through the regional consultations.
TheWCD Knowledge Base demonstrates
that EIA consists mostly of measures to
compensate or mitigate the planned impacts
and render them acceptable when the
decision to proceed has already been taken.
This is reflected in the tendency for EIA sin
the 1990s to focus increasingly on mitiga-
tion plans. A dded to this is the fragility of
newly established environment ministries
that may be unable to ensure compliance
with many of the plans or clearance condi-
182
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
tions.^^ T here are v\el I -documented casSi
even 1 n the 19905^ of decisions to proceed
with fi nanci ng or construction before an
effective El A is completed (see Box 6.7) .
Political presures and ti^t schedules are as
rde/ant today as i n earl ier decades and El A
results often have no significant influence
on the Choi ce of a dam as the preferred
option. The El A process is also not v\el I
sui ted to thi s purpose as i t was meant sol d y
for identifyi ng i mpacts and as93ciated
mitigation measures rather than as a tool for
including environmental and social consid-
erati ons i n the fi nal proj ect choi ce and
design. M any governments and fi nanci ng
institutions have adopted El A in the last
two decadeSi however the qual ity of assess-
ments and thei r abi I ity to genui ndy i nfl u-
ence outcomes i s sti 1 1 under-de/d oped.
M ost dam proponents see El A as an admi n-
i strati ve h urdi e to be cl eared, or a requi re-
ment to secure fundi ng. T hi s means that a
huge political, technical and financial
i nvestment i n the proj ect has often al ready
been made before the El A is launched. If
i mpacts are sa/ere, it is often too late to
change design, and proj ect caned I ati on may
involve loss of face and financial loss.
Further, El A operates under considerable
constrai nts due to the pol itical and admi nis-
trati ve pressures i mposed by proj ect sched-
ulesasit isseen as'ddaying" the project.
El A s are al 93 often done with i nadequate
basd i ne data on demographi c trendSj soci o-
cultural systems and ecosystem functioning.
T hi s I eads to unsati sfactory outcomes
Asan impact management tool, EIA has
evolved tov\ards a tool for also stti ng up an
ongoi ng envi ron mental management ^em
or programme when construction begns
involving appropriate experts ministries
and fidd activities The transition from a
planni ng mode, based on vol umi nous
assessments and reports to an i mplementa-
tion mode during project construction
creates ^ere institutional and human
resource challenges and in many cases the
measures are dther not i mplemented or
have fal I en short of the effi cacy envi saged i n
the planning documents The reality isthat
dams create huge management chal lenges
for the i mpl ementi ngministriesand agen-
ci es W here i nsti tuti onal capaci ty i n the
envi ron mental area i s v\eak the accompany-
i ng measures needed for sustai nabi e out-
comes often prove di ffi cul t to manage,
particularly when compared with the
physi cal act of desi gni ng and bui I di ng the
dam. This in turn may lead to public dissat-
isfaction with dams when affected people
percdvethat prom! ss have not been kept.
Operation, monitoring and
decommissioning
A fter large dams are commissioned there are
a number of management and operational
issues that require technical studies and
involve either decisions at the management
level or decision processes that are public in
Box 6.7 Environmental Impact Analysis (EIA): too little, too late
Even with improved environmental and social guidelines EIA still frequently fails
to influence decision-making. The Theun Hinboun project in Laos was initiated
in the early 1990s. The initial EIA financed by N 0 RAD concluded that the dam
would have minimal adverse impacts and significant benefits. M ost of those who
reviewed the document disputed these findings and N ORAD undertook
supplementary studies. These were completed one year after construction
began, so they had no impact on the decision making process orthe design of
the dam.
n the WCD case studies, an EIA was conducted only for Pa k M un at the
planning stage as it was a Worid Bank requirement, Howeverthe EIA was done
ten years before the final project was approved - and examined a different
project design for a different location than the one finally approved. Further, the
EIA was never revised or updated. ElA's were only required in Thailand from
1992, one year after Pa k M un was approved by the Thai Government,
Source: Theun Hinboun dam in N orpower, 1993, pl-7 as cited in Usher and
Ryder 1997 eco026, p80-81, WCD Submission: WCD Pak M un Case Study
The Report of the World Commission on Dams
183
Chapter 6
nature. T hese are required for the following
reasons:
■ to support routine day-to-day operations
such as reservoir operations and releases;
■ to change operations to conform to new
regulations that are introduced such as
economic, technical, environmental or
social regulation on dam safety opera-
tion of reservoirs in flood events or
changes to environmental flow require-
ments;
■ to change operations when a new dam is
introduced in the river basin that would
impact on the operating rules of the
existing dam;
■ to adapt the operation to changing needs
in the services provided by a dam over
time, particularly when the project is
multi-purpose, for example a change in
power markets that increases the value of
peaking power generation or a shift to
recreation priorities in controlling
reservoir water levels;
■ for renovation, upgrading or expansion
of the existing facilities; and
■ for relicensing processes in some coun-
tries, or for decommissioning.
0 ne of the most disturbing findings of
C hapter 2 was the lack of monitoring of the
impacts of dams and the complete failure to
conduct proper ex-post evaluations of
performance and impacts. That such large
investments have rarely been evaluated
once they have been in operation for a
significant period suggests little obligation
on the part of powerful centralised agencies
and donors to account for the costs and
benefits incurred. Perhaps more critically it
signals a failure to actively engage in learn-
ing from experience in both the adaptive
management of existing facilities and in the
design and appraisal of new dams. The
W C D C ase Studies suggest that provisions
for intensive monitoring of physical, social
and environmental effects of projects were
often weak or entirely absent. W here
monitoring was present, it was often restrict-
ed to hydrology and engineering parameters
related solely to the physical integrity of the
dam structure.
T he operation of large dams is subject to
many unforeseen and unforeseeable influ-
ences over time that transform and redistrib-
ute benefits and impacts. Patterns for the
release of water from reservoirs will normally
change overtime in response to demograph-
ic and land use changes in the river basin,
shifts in water use priorities, as well as
changes in the agricultural economy and the
markets for electricity Physical changes in
river morphology or reservoir sedimentation
as well as changes in the value that society
places on ecological and social impacts of
dams will influence how the dam is operated
at different periods of time over its life.
A s shown in C hapter 2, there are good
practice examples of adaptive management
to meet this changing context, drawing on
sophisticated decision-support and forecast-
ing software and in some cases accommodat-
ing stakeholder pari:icipation. M any devel-
oping countries that continue to focuson
building rather than optimising operations
have not yet adopted tools and policies for
adaptive management and optimisation.
W hat happens to dams at the end of their
lives? Dam decommissioning may be neces-
sary due to safety concerns, dam owners'
concerns about lower profits, or concerns
about social and environmental impacts.
Decommissioning can mean actions ranging
from stopping electricity production to dam
removal and river restoration. Several
hundred dams have been deliberately
184
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
removed, mostly in the U nited States, and
most of them small. Provision is not always
made in advance for who should pay for the
removal or for safety or other improvement
measures. A s reviewed in Chapter 2, rising
operations and maintenance costs may also
raise questions regarding the maintenance
and safety of large dams A t present, decom-
missioning costs are difficult to predict due
to the uncertainty surrounding the various
parameters affecting the costs and the
limited amount of practical experience with
decomissioning. One proposal is to ensure
that decommissioning funds are set aside at
the time of dam commissioning or during
the project's license period. Such decommis-
sioning funds are accepted practice for
nuclear power plants in countries such as
the U nited States. Decision-makers in the
developed world are increasingly looking at
how best to handle the end of the dam life
cycle. I n contrast many other countries do
not yet have firm licensing periodsfor their
dams (see Box 6.8).
Compliances^
D am projects are expected to comply with
the legal framework and guidelines of the
country and the organisations involved in
financing and constructing the dam. W here
environmental and social problems have
occurred in theWCD Knowledge Base, the
principle cause is the lack of legal require-
ments for particular standards at the outset
or a lack of appropriate recourse mecha-
nisms to adequately reflect people's rights in
the face of a powerful national decision.
This section shows that regulatory frame-
works are often weak, and the necessary
provisions are not made in planning docu-
ments. Even when they are present, govern-
ments and donors alike ignore them all too
frequently
Reasons for this include:
■ incompleteness, incoherence and ambi-
guity of national legal and regulatory
frameworks;
■ difficulties of accurately defining the
specification of social and environmental
requirements and integration of these
components into the implementation
agreements and schedules of projects;
■ lack of transparency and accountability
frequently with opportunities for corrup-
tion at key points in the decision-making
process;
■ lack of meaningful participation at key
points in the decision-making process
■ low levels of internal and external
monitoring that reduce feedback into
decision-making;
■ weak or non-existent legal recourse and
appeals mechanisms to an independent
judiciary particularly for negatively
affected and vulnerable groups; and
Box 6.8 Licensing processes and duration
There is considerable variation in the licensing procedures for dams. In some
countries dam sponsors must obtain only one licence. In other countnes the
dam sponsors must obtain a licence for each phase in the planning and project
cycle. For example in Hungary a dam project sponsor must first seek approval of
the EIA, then obtain a permit to complete the activities required to prepare the
project for construction. Two further licenses are required for construction and
operation. Some countnes exempt government operators and only require
licences for private operators. Licensing procedures are often restricted to
hydropower dams, with irngation dams largely exempt from formal licensing
There is considerable vanation in the term of dam operating licences. In Spam
licences are granted for 70 years, in N orway 60 years and in the USA for 30-50
years. In other cases dam licences are granted for short renewable periods of
time. For example in Hungan/ and Vietnam licences can be granted for
unspecified periods of time but they are subject to regular inspection and
review. Where dams are built and operated by the private sectorthe duration of
the licence period will need to reflect a reasonable payback period, typically set
at 30 years in build, operate and transfer (BOT) agreements. Reviews conducted
within the licence penod have the advantage of facilitating the monitonng of
operations and providing opportunities for adapting operations against the
background of changing societal values and expectations. Contemporary
concepts of adaptive management, transparency and accountability suggest
that there should be some scope for regular review, such as every five to ten
years.
Source: WCD Thematic Review V.4 Regulation
The Report of the World Commission on Dams
185
Chapter 6
■ lack of human, financial and organisa-
tional capacity.
National legal frameworks and
policy provisions
There were few policy, legal and regulatory
frameworks governing large dam building
before the 1970s, particularly for social and
environmental issues. However many
countries updated their policy and regulato-
ry frameworks in the 1980s and 1990s to
give a stronger emphasis to environmental
and social concerns, public participation,
efficiency and cost-recovery. There is now a
broad body of regulation potentially or
explicitly applicable to large dams at the
international and national levels, referring
to both the public and private sectors.
Existing regulations in most countries tend
to focus on project appraisal and implemen-
tation with insufficient focus on options
assessment planning in the early stages of
the decision-making process where funda-
mental choices are made. Few require
regular assessments and evaluation of
Figure 6.3 Trends in the implementation of economic and financial analyses
Global sub-sample: 105 dams
Cost benefit analysis
Financial analysis
Distribution analysis
Risk analysis
Sensitivity analysis
performance that could feed back to better
inform decision-making based on past
experience. N or do they often provide
recourse for those who may have been
harmed by a particular project.
I n many cases it has only been strong
concerted civil society movements that
have generated sufficient momentum to
ensure that constructive negotiations occur,
and dam projects are not imposed on
displaced communities without consulta-
tion.
T he C ross-C heck Survey demonstrates that,
since the 1950s, a growing number of
projects have required dam safety economic
cost-benefit analyses and financial plans
(see Figure 6.3). But economic appraisal
techniques such as risk and distributional
analysis were still mandated for only 20% of
large dam projects even in the 1990s Sensitiv-
ity analysis is more common and has become
standard for donor-financed projects. Dam
safety is a key issue for the world's ageing dams
and many national bodies have taken up the
challenge, assisted bythe engineering net-
works of ICOLD.
Even requirements for large dam
projects in the environmental
field are far from universal
although they are increasingly
required. EIA is recorded for less
than 40% of dams commissioned
in the 1990s (see Figure 6.4).
Strategic environmental assess-
ments and baseline surveys occur
at similar levels.
Year from start of commercial operation (by decade)
Source: WCD C ross-C heck Survey.
Corruption
Corruption is a world-wide
phenomenon that affects both
poor and rich countries. It may
186
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
take many forms, from inducements to
favour certain contractors during bidding,
through to manipulation of water alloca-
tions, offsetting farmer repayments, or
manipulating domestic electricity connec-
tions locally 2° At whate/er le/d, vested
i nterests can di stort the deci si on- maki ng
prcx:esSi underminingde/dopment. Deci-
sion- n^kers n^y be i ncl i ned to favour I arge
i nf rastructure as they provi de opportuni ti es
for personal enrichment not afforded by
smal I er or more di ff use al temati ves The
consquences frequently di recti y affect the
poor or the envi ronment. A I legions of
corruption have tainted many I arge dam
proj ects i n the past but have sel dom resul ted
in prosecution in court (see Box 6.9).
T he O EC D countri es^ and the maj or i nter-
nati onal f i nanci ng agenci esj have recog-
nised the pervasive extent of corrupt prac-
tice and its negative consequences Throu^
the 1990s they have moved to assist coun-
tri es i n tackl i ng corrupti on by maki ng
bri bery payments i 1 1 egal i n thei r country of
ori g n, debarri ng contractors convi cted of
bri bery from future contracts and ti ^teni ng
up due diligence on bri bery opportunities"
A s of A ugust 2000, tv\enty-three countri es
had ratified the 1997 OECD Convention on
Combating Bri bery of Foreign Public
0 ffi ci al s i n I nternati onal B usi ness Transac-
tions Its principal objectiveistodiminate
bribes to ford gn officials with each country
taki ng responsi bi I ity for the acti viti es of its
compani es and what happens i n its own
territories"
Transparency I nternati onal, an i nternati onal
NGO, hasalsD been acti vein promoting
wDrkable and transparent, 'i ntegity pacts: for
1 arge i nf rastructure tenders T U&e have met
with gDwi ng acceptance and success i n Lati n
America. A rangeofle^l measuresand
Box 6.9 Allegations of corruption
In early 2000 the Chinese government released information that corrupt officials
had embezzled $60 million (500 million yuan) from resettlement funds forthe
Three Gorges dam project. An official was sentenced to death for embezzling
almost $1,5 million from the project.
In Lesotho a trial started in J une 2000 against major international corporations
involved in construction on the Lesotho Highlands Water Project (LHWP).
Companies from France, Sweden, Germany the United Kingdom and Canada
have been accused of paying bribes. If the accused companies are convicted,
they face debarment from future projects with the European Union.
In the United States, economists from the United States Corps of Engineers
accused senior management of deliberately manipulating economic analyses to
promote billion dollar investments to be managed by the Corps,
Source: China in Agence France Presse, 21 ] anuan/ 2000, 10 M arch 2000;
LHWP in Sunday Independent 11] une 2000;
United States in G runwald, 29 February 2000
transparency processes are therefore increas-
ingly available for ensuring that dams are built
for societal good, not for personal gain.
M ultilateral and bilateral
financing agencies
Overseas development financing agencies,
particularly the multilateral and bilateral
Figure 6.4 Trends in the implementation of environmental and social
assessments
Global sub-sample: 105 dams
60 I
Year from start of commercial operation (by decade)
Source: WCD C ross-C heck Survey.
The Report of the World Commission on Dams
187
Chapter 6
The policies of the
deveiopment banl(s are
more concerned w/th
project planning, design
and financial
management than with
options assessment or
with the operational
phase of a large dam
project.
agencies have played an impor-
tant role in funding and secur-
ing large dam projects. They
have adopted a broad set of
policies, criteria and guidelines
since the 1980s as a result of
lessons learned from experience
and public criticism. For exam-
ple, the World Bank has adopt-
ed ten safeguard policies relating
to such environmental issues as
forestry, pest control and envi-
ronmental assessments; and such social
issues as indigenous people, cultural property
and resettlement. T he result of these devel-
opments is that on paper the W orld Bank
has a comprehensive set of policies dealing
with large dam projects. M ore recently the
International Finance Corporation (IFC) and
the I nter-A merican, A si an and A frican
Development Banks have adopted similar
guidelines.
Despite these changes, the banks' policies,
like the national regulatory systems are more
concerned with project planning, design and
financial management than with options
assessment or with the operational phase of
a large dam project. In addition, they have
paid more attention to monitoring the
planning and construction phases than the
operation of the project, which is often left
to national governments. Post-implementa-
tion monitoring is generally discontinued at
most five years after project commissioning.
Even then, the main focus has been on
comparing the project proposals with the
project outcome. Weak treatment of social
and environmental impacts at appraisal
leads to weak assessments of outcomes at
evaluation.
This approach assumes that the planning
phase can anticipate and cover all future
eventualities. Yet the W C D K nowledge
Base shows that achieving satisfactory social
and environmental outcomes requires
constant adaptive management. T he short
term and inflexible nature of the agreement
between the borrower and the bank is an
obstacle to achieving this result. Further,
the mitigation measures often receive less
prominence in comparison with finance
issues.
N umerous developed countries have bilater-
al aid agencies and export credit agencies
which have also funded or supported the
financing of dams and dam-related
projects. 2^ Bilateral aid agencies vary in the
stri ngency of the requi rements they have for
supporti ng I arge dam proj ects Yet whi I e
they are rd ati vdy smal I parti ci pants i n the
I arge dam sector, the r fundi ng for speci fi c
aspects of the master planning or project
feasibility studies can be critical in bringing
other fi nanci ers to the tabi e.
Export credit agencies(ECAs) are increas-
ingly fi nanci ng speci fi c porti ons of I ange-
scal e i nf rastructure proj ects i n devd opi ng
countries EGAs provide loans guarantees
and insurance to domestic corporations and
busi nesses for thd r acti viti es overseas to
support and promote export trade from thd r
respecti ve countri es T hey f i nance the hi ^
value, dectrical and mechanical equipment
components and are an i ncreasi ngly i mpor-
tant source of fi nanci ng for private sector
i nvol vement i n I arge dams.
Unlikethemajor devd opment f i nanci ng
agendes EGAs generally lack policies on
environmental and social issues and do not
necesari ly adhere to i nternational ly accept-
ed standards and guidd i nes Experiences
fromtheThreeGorgesdamin Ghina, llisu
dam i n Turkey M aheshv\ar dam i n I ndia
and San Roque dam i n the Phi I i ppi nes
188
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
underlinethe need for ECA sto examine
closely the social and environmental im-
pacts of the projects they support. T he
absence of common standards among EGAs
leads to ad hoc competitive decision-making
(see Box 6.10).
T he policies of multilateral banks have
challenged the capacity of their borrower
countries to actually implement their
requirements. Bank staff have had to either
exercise their own discretion to adapt the
policies to the realities of each country or
ignore cases of non-compliance by their
borrowers. I n either case the bank's toler-
ance of the staff's and the borrower's non-
compliance with the policies can breed
cynicism about the willingness to comply
There are no sanctions for staff members, or
countries, for non-compliance. Performance
criteria for staff have tended to be related to
approvals and disbursement targets.
TheWCD Knowledge Base offers many
examples of the failure of project propo-
nents, contractors and operators to fulfil
commitments, whether explicit (project
specific agreements and contracts) or
implicit (applicable policies, laws, regula-
tions and guidelines). TheWCD Case
Studies provide an indication of the types of
breaches observed (see Box 6.11). The three
basic reasons for lack of compliance have
been:
■ Thetendency for large projects to
proceed under a restricted decision-
making process negotiated between
governments, lenders and contractors
with little public oversight, little partici-
pation by affected parties and limited
disclosure and public access to informa-
tion. I n many cases lack of clear moni-
toring procedures also limited public
scrutiny
■ The lack of sanctionsfor non-compli-
ance, either at national or international
level. In many cases local affected
communities were unable to defend their
interests when faced with a strong
centralised government especially in
countries with weak legal safeguards and
recourse mechanisms.
■ T he dependence, i n n^ny cases^ on the
gocxd faith of sovereign States and public
pressure to resDlvedisputeSj adjudicate
cl ai ms and ensure compensati on for
those vvho have suffered wrongs. T he
absnce of legal sanction or, where this
exi stSi di ffi cul ty i n accessi ng i t made i t
easi er for de/d opers ( especi al I y govern-
ments) to escape the consequences of
non-compi i ance. T he costs i nvol ved i n
seeki ng I egal remedi es v\ere often prohi b-
iti ve for those who may have been
negatively affected.
The multilateral banks- and in particular
the World Bank - have the most SDphisti-
cated St of policies operational procedures
and gui del i nes amongst the i nternati onal
donor community and are under regular
scruti ny by ci vi I soci ety I n exami ni ng actual
practice and compliance with standards and
the real i sati on of the outcomes that these
Box 6.10 Export Credit Agencies: competing for business versus
common standards
After the US Export-Import Bank declined support for the Three Gorges project
in China, citing lack of information on environmental and social mitigation, other
EGAs, with lower thresholds of social and environmental acceptability, stepped
forward to issue loan guarantees to corporations. This phenomenon is especially
relevant to the financing of large dam projects where EGAs are supporting
projects declined by otherfunding agencies on environmental grounds. In J une
1999, the G-8 ministerial meeting issued a statement recognising the impor-
tance of common standards among the EGAs. Laterin the yearthe OECD
Working party on Export Credits and Credit Guarantees agreed to a voluntary
environmental information exchange on larger projects but fell short of agreeing
on new criteria for EGA support.
Source: Udall, 2000, WGD Contnbuting Paperto
Thematic Review V,4 Regulation, pl-3.
The Report of the World Commission on Dams
189
Chapter 6
imply, theWCD Knowledge Base has
emphasised the experience of these banks.
G iven that the banks have often fallen short
of realising such high standards for planning
and decision-making, it is legitimate to
expect that the other donors and in-country
Box 6.11 WCD Case Studies: a compliance report card
In most of the WCD Case Studies there are examples of agreements made not
being respected and commitments only partially implemented
■ For Grand Coulee dam $54 million for past losses and $15 million per
yearin compensation was awarded bythe courts to the Colville tribe in
1994, 50 years afterthe dam was built. The settlement cited high level
government correspondence indicating an initial intention to compen-
sate the tnbes for loss of salmon in accordance with existing treaties, this
was abandoned by the late 1930s,
■ Construction of Kariba dam complied with the laws of the day- however
It was planned and built pnorto most regulations being in place. In
addition, the laws under colonial rule in Southern Rhodesia (now
Zimbabwe) did not include provision for just legal redress for displaced
Afncans, a clear contravention of prevailing international standards,
■ At Tarbela dam nearly 2 000 families had not been adequately resettled
twenty years after displacement in terms of the 1967 cntena for
compensating landowners.
■ AtTucurui, the initiation of the second phase of the project in 1999
proceeded without an environmental impact assessment (EIA),
Eletronorte, the utility that owns the project, maintains that Phase II does
not require an EIA as it is the continuation of a project approved prior to
the setting of EIA regulations in Brazil, Local communities, concerned
about the possibility of a repeat of the social and environmental impacts
of Phase I of the project, disagree with this position and have asked for a
full EIA, The Case Study also points out that Eletronorte did not respect
the Waters Code which stipulated that hydropower plants should not
adversely affect the food and needs of nver bank communities, public
health, shipping, conservation and free circulation offish, amongst others,
■ In Aslantas the government agreed with the Worid Bank to recover a
portion of the costs of the irrigation component of the scheme from
farmers over 50 years. Current recovery rates are inadequate to meet this
target (see Box 2.4).
■ At Pak M un, an EIA was a Worid Bank requirement and should have been
performed on the revised project prior to construction.
■ In India, a national assessment of dam projects cleared in the 1980s and
1990s shows that in 90% of cases the project authorities have not fulfilled
the environmental conditions under which environmental clearance was
given bythe central government underthe Environment Protection Act
of 1986.
■ In N orway provisions for environmental flow releases from hydropower
dams have allegedly dropped below the minimum established in the
icensing agreements. Yet the central authorities lack legal means to
monitor and sanction confirmed offenders.
■ In China a review of Lingjintan dam showed that compliance with
environmental clauses in construction contracts was not satisfactory due,
amongst otherfactors, to lack of incentives, lack of accountability and
poor oversight.
Source: WCD Case Studies
agencies will have encountered similar
difficulties and also fallen short of the
outcomes implied bythe standards set by
the banks.
Findings and Lessons
C onflicts over dams have heightened in the
last two decades, as awareness of their
impacts and performance has grown and the
debate over costs and benefits has spread.
W hile conflict has sparked innovation in
some contexts and by some stakeholders in
the debate, in others it has deepened and
entrenched conflict. The Global Review of
large dams and their alternatives has exam-
ined the performance of large dams using a
number of different lenses - technical,
financial, economic, environmental and
social - and explored the options that are
currently available to fulfil water and energy
needs.
A s part of its G lobal Review of past experi-
ence, the C ommission examined the deci-
sion-making, planning and compliance
processes around large dams in the W C D
Knowledge Base to better understand what
factors influence these processes and the
performance and results of the projects.
Based on this review the findings on deci-
sion-making include:
■ centralised and bureaucratic State
agencies and utilities have often promot-
ed and implemented dams as one of a
small number of conventional responses
to water and energy needs, a choice that,
once taken, often has not been revisited
even in the face of an expanding list of
alternatives;
■ foreign assistance has stimulated large
investments in dams in developing
countries, by providing financing - more
than $4 billion per year during the peak
190
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
of lending in 1975-1984 - and leading
financing arrangements;
■ large developing countries with many
large dams (including China, India and
Brazil) have established internal capacity
to build large dams, although in recent
decades they have often used external
finance and equipment to build larger
projects;
■ countries building fewer dams have been
disproportionately influenced by foreign
assistance for large dams, making them
more vulnerable to conflicts between the
interests of governments, donors and
industry involved in foreign assistance
programmes and improved development
outcomes for rural people, particularly
the poor
■ the multilateral banks and bilateral aid
agencies, alongside the dam-building
industry and international industry
associations, have played a key strategic
role in spreading the technology to
developing countries, lending legitimacy
to emerging dam projects, and fostering
the technological and human resources
required to build and maintain dams;
■ there has been a generalised failure to
include and recognise affected people
and empower them to participate in
decision making.
■ the lack of agreements on water use
within shared river basins is an increas-
ing concern and cause for conflict,
particularly as demands grow and unilat-
eral decisions to build large dams by one
country alter supply within a basin with
significant consequences for other
riparian States.
The end result of the influence exerted by
vested interests, and the conflicts of inter-
ests that have arisen, has been that many
dams were not built based on an objective
assessment and evaluation of the technical,
financial and economic criteria applicable at
the time, much less the social and environ-
mental criteria that apply in today's context.
That many of such projects have failed to
deliver by standards applicable in either
context istherefore not surprising, but
nonetheless cause for concern.
Focussing on the planning cycle for large
dams reveals a series of limitations, risks and
outright failures in the manner in which
these facilities have been planned:
■ participation and transparency in plan-
ning processes for large dams was neither
inclusive nor open and while actual
change in practice remains slow even in
the 1990s there is increasing recognition
of the importance of inclusive processes;
■ while the number of options have
increased overtime, options assessment
was typically limited in scope due to
political and economic interests driving
dam projects, lack of familiarity with
other options, the perceived need to
quickly proceed with large-scale projects
to meet large projections in demand and
the relative ease of developing new
supply relative to undertaking policy or
institutional reform;
■ project planning and evaluation for large
dams was confined primarily to technical
parameters and the narrow application of
economic cost/benefit analyses with
many sectoral studies aimed at finding
least-cost supply solutions for providing a
single service such as irrigation water or
electric power;
■ where opportunities for the participation
of affected people, and the undertaking
of environmental and social impact
assessment have been provided they
often occur late in the process, are
The Report of the World Commission on Dams
191
Chapter 6
limited in scope, and even in
tlie 1990s their influence in
project selection remains
marginal;
■ the paucity of monitoring and
evaluation activity once a
large dam is built has reduced
the basis for learning from
experience; and
■ while countries that were the
first to build dams are now
evaluating decommissioning, removing, or
re-operationalising ageing facilities that are
due for re-licensing, many other countries
do not yet have established licensing periods
that clarify the responsibilities of the owner
towards the end of the dam's effective life.
The net effect of these difficulties is that
once a proposed dam project has passed
preliminary technical and economic feasibil-
ity tests and attracted interest from govern-
ment, external financing agencies or politi-
cal interests, the momentum behind the
project often prevails over further assess-
ments. M oreover where substantial differ-
ences arise between proponents and those
potentially affected, efforts to modify plans
and decisions often must resort to legal or
other action outside the normal planning
process.
But poor outcomes and mistrust are not
simply a matter of narrow and technically
focussed planning and decision-making.
They also stem from the failure of dam
proponents and financing agencies to fulfil
commitments made, observe statutory
regulations and abide by internal guidelines.
A mong the findings on compliance are:
■ in some cases, the opportunity for
corruption provided by dams as large-
scale infrastructure projects further
distorted planning and decision-making;
■ weak regulatory frameworks and lack of
sanctions at the national level, particu-
larly for options assessment and social
and environmental requirements, and
little enforcement of existing regulations
have contributed to the poor economic,
social and environmental performance of
many large dams;
■ large projects tend to lack public over-
sight of negotiations between govern-
ment, lenders and contractors, including
limited disclosure and public access to
information;
■ in many cases lack of clear monitoring
procedures limits public scrutiny and
accountability;
■ there is a lack of sanctions at the inter-
national level for non-compliance with
international norms regarding water use
in shared river basins;
■ within public international financial
institutions, there are few, if any sanc-
tions for staff members, or countries, for
non-compliance;
■ in some countries, there is a lack of legal
opportunities for affected groups to seek
recourse, therefore lessening the ac-
countability of the project developers;
and
■ most of the bilateral Export Credit
Agencies are only beginning to develop
social and environmental policies and
guidelines and the lack of consistency
among the agencies' guidelines has
resulted in projects rejected by some on
environmental and social grounds
receiving funding from other sources
with lower standards.
To sum up, whereas substantial improve-
ments in policies, legal requirements and
assessment guidelines have occurred, partic-
ularly in the 1990s, it appears that business
192
Danisand Development: A New Framework for Decision-M aking
Decision-Making, Planning and Compliance
is still often conducted as usual when it
comes to planning and decision-making.
Further, past conflicts remain largely unre-
solved and past impacts largely unmitigated.
TheWCD Global Review found that the
influence of vested interests, legal and
regulatory gaps, disincentives for compli-
ance and lack of monitoring, participation
and transparency amongst other things,
have combined to create significant barriers
to reforms that could otherwise make the
planning and decision-making processes
more open, responsive and accountable.
Recent examples cited in this and earlier
chapters are the basis of the C ommission's
optimism that these barriers are surmounta-
ble and these difficulties are not inevitable.
TheWCD Global Review indicates that
there are opportunities for reducing negative
impacts and conflicts, and indeed a respon-
sibility, to:
■ increase the efficiency and performance
of existing assets and systems;
■ better assess development needs and the
full rangeof development options;
■ avoid and minimise ecosystem impacts;
■ ensure that displaced and project-
affected peoples' livelihoods are im-
proved;
■ shift away from a balance
sheet approach to decision-
making in favour of broader,
inclusive and more timely
multi-criteria approaches to
planning and decision-
making;
■ resolve past inequities and
injustices, and transform
project-affected people into
beneficiaries, enabling
them to contribute to project benefits;
■ conduct regular monitoring and periodic
reviews; and
■ develop, implement and enforce incen-
tives, sanctions, and recourse mecha-
nisms, especially in the area of environ-
mental and social performance.
T he remainder of the report builds on the
findings and lessonsof the W C D Global
Review. It delivers a way forward that can
improve planning, decision-making and
compliance, capitalising on the options
available - whether of a technological,
policy or institutional nature - and provid-
ing economically efficient, socially equitable
and environmentally sustainable solutions
to meet future water and energy needs.
The Report of the World Commission on Dams
193
Chapter 6
Endnotes
1 M any government agencies involved in water
resources development in countries that build
large numbers of dams maintain a construction
workforce to build infrastructure: in the
United States the Bureau of Reclamation and
the A rmy Corps of Engineers and in China the
Water Resources M inistry.
2 Eckstein, 1958.
3 Gillisetal, 1987, p366.
4 W CD Thematic Review V.5 N egotiation,
section 3.3.
5 Sklarand McCully 1994, eco029, W C D
Submission, pl2-14; Gilliset al, 1987.
6 W CD Thematic Review III. 2 Financing
Trends, ch. 3.
7 The total investment in damsbythemultilat-
erals and bilaterals portrayed in Figure 6.1 is
approximately $125 billion.
8 Guhan, 1995, cited in India Country Study
Section 6.1.8.
9 ICE, 1994, pl5-16; ICE, 1996, table 1.
10 Usher, 1997b, pl20-123.
11 M orse and Berger, 1992; U maria, 1998, p7;
Wappen bans Task Force, 1992.
12 Usher, 1997a, eco026,W CD Submission,
pl20-123.
13 Egypt and Ethiopia are now working towards
greater collaboration through the N lie Basin
Initiative.
14 W C D Thematic Review on N egotiation,
section 3.4.
15 H anusin, 1999, opt052, W CD Submission, 4-
5.
16 W CD Thematic Review lll.l Economic
A nalysis
17 W CD Thematic Review V.2 Environmental
and Social A ssessment. Section 1.
18 For example see the W CD India Country
Study section 7.4.
19 W C D T h emati c R evi ew V.4 R egul ati on ,
section 3.1.
20 Lovei and M cKechnie, 2000, p34-37.
21 For example the 1996 Development A ssist-
ance Committee'sRcommendation on Anti-
corruption Proposals for A id-funded Procure-
ment.
22 OECD, 2000b; OECD, 2000c, website http://
www.oecd.org/daf/nocorruption/index.htm,
viewed 4 September 2000.
23 For example the U nited Kingdom has the
Department for International Development
and the Export C redits G uarantee
Department.
24 For example see W CD India Country Study
194
Danisand Development: A New Framework for Decision-M aking
Part Two:
The Way Forward
he mandate required the World C ommission on
D ams to propose a framework for options assessment
and decision-maldng processes for water and energy
resources development, along with a set of criteria and
guidelines for the planning design, construction,
operation and decommissioning of large dams Part Two
of the report presents a new approach to decision-making
based on the findings in the G lobal R eview (Part One).
m C hapter 7 presents a normative framework for equitable and
sustainable development and develops an approach to negotiating
outcomes for water and energy development projects based on
recognising rights and assessing risks.
■ C hapter 8 sets out seven broad strategic priorities that should guide
decision-making. Each one includes a set of principles that, if
applied, will lead to more equitable and sustainable outcomes in
future.
■ Chapter 9 develops supporting criteria and guidelines that will
help decision-makers and all interested parties implement the
strategic priorities set out in C hapter 8.
■ Part Two closes with C hapter 10 which stresses the need for
concerted and simultaneous action and proposes entry points for
the different constituencies involved in the dams debate to follow
up in response to the recommendations of the Commission.
Chapter 7:
Enhancing Human Development:
Rights, Risks and Negotiated Outcomes
0 improve development
outcomes in the future we
need to look at proposed water and
energy development projects in a much
wider setting - a setting that reflects
full knowledge and understanding of
the benefits and impacts of large dam
projects and alternative options for
all parties 1 1 means that we have to
bring new voices, perspectives and
criteria into decision-making and
we need to develop a new approach
that will build consensus around the
decisions reached. T his will result in
fundamental changes in the way
decisions are made.
Chapter 7
The debate about
dams is a debate
about the very
meaning, purpose and
pathway of
deveiopment as weil
as the roie that the
state piays.
T his chapter proposes a new basis
for assessing options and reaching
decisions on water and energy
resources development. It links our
review of past experience con-
tained in the G lobal Review
chapters with the W CD's frame-
work for future practice elaborated
in chapters 8 and 9. In developing
this framework the Commission
found that applying the lessons learnt does
not merely imply a change in process and
procedure. The fault lines of the dams
debate run far deeper and touch upon many
of the fundamental norms and values that
affect our lives as citizens and communities.
In moving forward the Commission recog-
nises that the dams debate is rooted in the
wider, ongoing debate on development. The
emerging global vision of equitable and
sustainable development provides the
foundation for the C ommission's findings
and recommendations. This foundation
relates to:
■ the framework of internationally accept-
ed norms on human rights, the right to
development, and sustainability
■ global trends and the emerging develop-
ment paradigm; and
■ a rights based approach where recogni-
tion of rights and assessment of risks
provides the basis for negotiated deci-
sions on dams and their alternatives.
From Global Review to
Future Practice
A long with all development choices,
decisions on dams must respond to a wide
range of needs, expectations, objectives and
constraints. A s matters of public choice and
policy they will always reflect competing
interests and require negotiation. Reconcil-
ing competing needs and entitlements isthe
single most important factor in addressing
the conflicts associated with development
projects and programmes - particularly
large-scale interventions such as dams.
Access to water provides a graphic illustra-
tion of such competing needs and develop-
ment objectives and the reason why equity
and justice considerations emerge as key
issues. Riparian communities with long-
standing use rights and economies that
depend on local resources have an immedi-
ate interest in maintaining current use
patterns and assuring fulfilment of their
future needs. H owever, in the context of
national policies, meeting development
needs may require sharing water resources.
To balance these needs societies will have to
negotiate a framework for equitably sharing
the resource. H istory shows that this can be
done successfully provided a transparent and
legitimate process is followed.
Dams have often been seen as an effective
way of meeting water and energy needs.
However, the Global Review has empha-
sised the wide range of problems associated
with them. The Commission acknowledges
that today's perspective on development
reflects the benefit of knowledge that may
not have been available to past decision-
makers. N onetheless, it is clear that the
positive contribution of large dams to
development has, in many cases, been
marred by significant social and environ-
mental impacts which are unacceptable
when viewed from today's values.
T he debate about dams is a debate about the
very meaning, purpose and pathway of
development as well as the role that the
State plays in both protecting the rights of
198
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
its citizens and responding to their needs
through development policies and projects.
The WCD Global Review showed clearly
that large-scale infrastructure projects such
as dams can have devastating impacts on
the lives and livelihoods of affected commu-
nities and ecosystems, particularly in the
absence of adequate assessments and provi-
sions being agreed to address these impacts.
D uring its regional consultations and
through the W C D C ase Studies the C om-
mission was confronted with accounts by
communities and individuals on the nature
and extent of these impacts. T hese accounts
give rise to fundamental concerns about the
way governments and their agencies have
exercised their role and responsibilities in
the development process.^
I mprovi ng the de/dopment process and its
outcomes must start with a clear under-
standi ng of the shared val ues obj ecti ves and
goal s of de/d opment and the r i mpl i cati ons
for institutional change. The Commissi on
grouped the core val ues i nformi ng its
understandi ng on these i ssues under fi ve
main headings:
■ Equity
■ Efficiency
■ Participatory decision-making
■ Sustainability
■ Accountability
These five values run through the entire
report and are the focus of concerns raised
by the evidence presented in the G lobal
Review. Applying these values to the
evidence it has collected, the C ommission
believes that negotiated outcomes using a
rights-and-risks approach will deliver the
most favourable development results.
Reference to these values enables all stake-
holders to test decisions relating to water
and energy development. If the report
advances these values significantly we will
emerge at our destination - improved
decision-making processes that deliver
improved outcomes for all stakeholders.
In the following sections the Commission
presents a new policy framework for
decision-making on water and energy
development optionsthat can be applied in
national and local contexts. To improve
development outcomes, ensure public
acceptance and reduce future controversy,
this new basis for judgement needs to win
the support of the full range of key stake-
holders. It suggests that decision-making on
water and energy management will align
itself with the emerging global trends on
equitable and sustainable development.
Sustainable Human
Development - A Global
Framework
What are these trends, and how firm is their
direction and force? W hat do they imply for
decision-making? W hat do they say about
the rights that societies, communities and
individuals within societies, are entitled to
and the responsibilities that accompany
these rights?
There is a globally accepted framework for
setting universal goals, norms and standards.
T he foundations of the framework are the
U nited N ations C barter (1945) and the
Box 7.1 Shared values and institutional practices - the UN Millennium
Report
"The economic sphere cannot be separated from the more complex fabric of
social and political life and sent shooting off on its own trajecton/. To survive and
thnve, a global economy must have a more solid foundation in shared values
and institutional practices- it must advance broader and more inclusive, social
purposes."
Source: Annan, 2000
The Report of the World Commission on Dams
199
Chapter 7
A rights based approach
provides a principied
basis for mediating
development choices
among competing
interests.
U ni versal D eclaration of H uman R ights
(1947) (seeAnnexVI for full texts).^
I n the last two decades of the 20' century
the United Nations General Assembly
reinforced this framework with the U N
Decl arati on on the Ri ^t to
Development (1986) and the
Rio Declaration on Environ-
ment and De/dopment (1992)
(seeAnnexVI for full texts).
Taken wi th the earl i er cove-
nants and conventions on human
ri ^t5 they cover a broad spec-
trum rang ng from hurrm ri ^t^
throu^ sxial de/dopment and envi ronnmt,
to economic co-operation.
Human rights
Reference to the framework of human rights
adopted by the international community in
1948 advances the process of planning and
decision-making in important ways. It
articulates such rights as self determination
and the right to consultation in matters that
affect people's lives, the right to democratic
representation of people's views on such
matters, the right to remedy and the right to
an adequate standard of living, freedom from
arbitrary deprivation of property freedom from
violence, freedom of thought, conscience and
rdigion and freedom of opinion and expres-
sion. M ore generally it includes the right to a
social and international order in which these
rights can be fully realised.
A II people are accorded human rights
without discrimination by virtue of their
humanity Reference to the human rights
framework means those policies that deny
the rights of some to fulfil those of others
cannot be adopted. Thus any policy or law
adopted must contain the intention to
respect the rights and entitlements of all.
T he application of a rights based approach
recognises the indivisibility of civil, politi-
cal, economic, cultural and social rights. It
broadens the range of basic human rights
beyond the socio-economic sphere of needs
to include rights to life, health care, educa-
tion, shelter, food, water, remedy security
subsistence and livelihood.
U nlike needs, which are expressed as
aspirations for benefits, rights and entitle-
ments are expressed in law, allowing for
their attainment or redress through the
justice system. A country may use its legisla-
tive process to ensure that appropriate
rights-based policies are given legal expres-
sion and to establish institutional mecha-
nisms to uphold rights. The legal system also
provides a means for resolving potential
conflicts in cases where rights give rise to
competing entitlements. A rights based
approach thus providesa principled basisfor
mediating development choices among
competing interests.
The right to development
I n 1986 the U N G eneral A ssembly adopted
the Declaration on the Right to Develop-
ment (DRD).' It marked a si giifi cant step
by the i nternati onal comnxini ty i n devd op-
i ng a normative framework that specifies
responsibilities in applying a human ri^ts
approach to de/dopment. It moved beyond
the sphere of individual human ri^tsto
address rdationships betv\een different
i nterest groups i n sxi ety and thd r i nterac-
tion with the state.
The Declaration on the Right to De/dop-
ment sets out a number of rde/ant
concepts
■ Development is a comprehensive process
aiming at the constant improvement of
the well-being of the entire population;
200
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
it affects economic, civic, social, cultural
and political rights.
■ T he promotion of, respect for and
enjoyment of certain human rights and
fundamental freedoms cannot justify the
denial of other human rights and funda-
mental freedoms.
■ T he creation of conditions favourable to
the development of peoples and individ-
uals isthe primary responsibility of their
States.
■ N ational development policies aiming at
the constant improvement of the well-
being of the entire population and of all
individuals should be formulated on the
basis of their active, free and meaningful
participation and fair distribution of
benefits resulting therefrom.
■ The right of peoples to exercise full and
complete sovereignty over all their
natural wealth and resources.
■ The right to self determination.
■ Equal opportunity for access to food and
housing.
TheDRD sought to clarify the role of the
State in exercising its rights, responsibilities,
duties and obligations in planning and
implementing national development poli-
cies and programmes. It reflects the recog-
nition that every society acts as an organised
polity in which the State is accorded powers
and responsibilities. A t the same time States
are subject to conditions that can be sum-
marised under the heading of good govern-
ance criteria, such as those in the Declara-
tion on Human Rights including the rule of
law, accountable bureaucracies and freedom
of information. The legitimacy of the State
in exercising its role is premised on the
assumption that it acts in accordance with
these criteria. W ithout good governance,
the legitimacy of the State and ultimately its
ability to take decisions are compromised.
State authority may also be
limited through adherence to
the framework of international
conventions that, in certain
circumstances, supersedes
strict sovereignty
Sustainable
Development - the
Rio Principles
The Declaration of the U nited
N ations C onference on the H uman Envi-
ronment (Stockholm, 1972) for the first
time accepted that the environment was
fundamental to human well-being, and that
its management and care in the interest of
advancing wider human goals was a central
task of States and the international commu-
nity. A rticulation and codification of
environmental rights took somewhat longer.
The United Nations Conference on Envi-
ronment and Development adopted the Rio
Declaration on Environment and Develop-
ment in June 1992. The Declaration con-
tains 27 principles, usually known as the Rio
Principles^ Se/eral of these are of immedi-
ate rel e/ance to v\0ter and energy resources
management.
■ Principle 1 states that 'H uman beings are
at the centre of concerns for sustainable
development. They are entitled to a
healthy and productive life in harmony
with nature'.
■ Principle 3 recognises the right to
development, but insists that it be met in
an equitable way that considers future
generations as well as present partici-
pants in development.
■ Principle 4 insiststhat sustainable
development requires environment to be
integrated with the development process
and form a central feature of the aims of
that process. Environment, on its own,
is an insufficient goal.
The Report of the World Commission on Dams
201
Chapter 7
Principle 10 underlines tli at all con-
cerned citizens must be involved in
handling environmental issues, and must
participate in the decision-making
process. This participation must be
accompanied by effective access to
relevant information and by opportuni-
ties to seek redress and remedy in case
agreements are not respected.
Principle 13 states that States shall
ensure compensation for victims of
environmental damage and give priority
to the further development of law
regarding liability in such cases.
Principle 15 states that the precautionary
approach shall be widely applied by
Figure 7.1 The WCD policy framework
Normative Development Framework
Universal
Declaration of
Human Rights
United Nations
Declaration on
the Right to
Development
Rio Declaration
on Environment
and
Development
WCD Core Values and Shared Understanding
Core Values
Equity
Efficiency
Participatory Decision-M aking
Sustainability
Accountability
Rights and Risks Approach
A Tool for Negotiated Decision-Making
Agenda for Implementation
Strategic Priorities and Policy Principles
WCD Criteria and Guidelines
States according to their capabilities.
W here there are threats of serious or
irreversible damage, lack of full scientific
certainty shall not be used as a reason for
postponing cost-effective measures to
prevent environmental degradation.
■ Finally, Principle 22 recognises the vital
role of indigenous people and other local
communities in environmental manage-
ment and development, and entrusts
states with ensuring their effective
participation in the achievement of
sustainable development.
The Rio principlesin conjunction with
A genda 21 thus highlighted not only the
linkages between environment and develop-
ment but also the importance of local
communities having a significant role in
shaping national development strategies.
The Global Review provided extensive
evidence to illustrate that governments, in
constructing dams, have often found them-
selves in conflict with basic principles of
good governance that have been articulated
in the three international instruments
referred to above. This situation still pre-
vails today. The level of conflict surround-
ing large dams, yesterday and today, is
sufficient to illustrate that dams frequently
trigger disagreements about the respective
rights of governments and their citizens.
The U N Declaration of H uman Rights, the
Right to Development and the Rio Princi-
ples together make up an internationally
accepted framework of norms empowering a
concept of development that is economical-
ly viable, socially equitable, and environ-
mentally sustainable. It is a powerful
framework with a central bearing on the
dams debate. Figure 7.1 illustrates how the
Commission draws on these internationally
accepted norms in the remainder of this
202
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
report to develop a new policy framework
and corresponding guidance for water and
energy resources development.
Trends and Challenges in
Applying the New
Development Framework
W hen invoking this emerging universal
normative framework, one must not over-
state its completeness, its complete accept-
ance, or the ease of applying its provisions
in practice. Nevertheless, recent trends in
global public policy suggest that increasing
attention is being paid to the gap between
aspiration and realisation. It is significant
that the focus of the U nited N ations D evel-
opment Programme's (U N DP) Human
Development Report 2000 is on human rights
and human development (see Box 7.2). The
framework also strengthens the notion, now
gaining currency in a variety of arenas, that
there is a body of common concerns based on
a range of international conventions and
accords that transcend national sovereignty
T he adoption of a rights based approach
does not on its own resolve the practical
challenge of meeting human needs. During
its regional consultations the C ommission
listened to a wide range of views and reason-
ing on this matter M eeting rapidly growing
needs for water and energy - particularly in
the developing economies of the South -
imposes difficult choices on governments.
Failure to respond to these needs carries
significant economic and political risks.
Food security blackouts, empty water taps
and floods are among the most immediate
and sensitive public service issues for which
society holds government accountable. In
the past, large-scale dam projects seemed to
offer both apparently straightforward and
highly visible options for responding to
these pressures.
A t the same time, the decision criteria used
by governments do not always match those
of organised groups of citizens. G overn-
mentsaretoo often inclined to invoke
urgent development needs as a reason for
restricting rights, while civil society groups
believe that full respect for rights and the
search for alternatives represents the surest
way of promoting equity and justice in
development.
For many parts of the developing world,
access to capital, technology and develop-
ment opportunities determines the extent to
which local and national economies are able
to develop. Similarly the political economy
of power, vested interests and access to
resources that characterise each society have
a large influence on its commitment to
equitable and sustainable development.
This is not to suggest that the problems
reside in the poorer countries. Pressure for
water and energy development - in both
Box 7.2 Human rights and human development
The UNDP Human Development Report 2000 focuses on human nghts as the
fundamental framework within which human development must be pursued. It
contends that societies are on the threshold of a significant advance in the
recognition of, and respect for, human rights. But this will require six fundamen-
tal shifts from the thinking that dominated the 20* centun/:
■ From state-centred approaches to pluralist, multi-actor approaches -
with accountability not only for the State but also for media, corpora-
tions, schools, families, communities and individuals,
■ From national to international and global accountabilities - and from the
international obligations of States to the responsibilities of global actors.
■ From the focus on civil and political rights to a broaderconcern with al
nghts - giving as much attention to economic, social and cultural rights,
■ From a punitive to a positive ethos in international pressure and
assistance - from reliance on naming and shaming to positive support.
■ From a focus on multiparty elections to the participation of all through
inclusive models of democracy
■ From poverty eradication as a development goal to poverty eradication
as social justice, fulfilling the rights and accountabilities of all actors.
Source: UNDP, 2000
The Report of the World Commission on Dams
203
Chapter 7
Governments face very
real dilemmas in trying
simultaneously to satisfy
urgent needs and
advance the realisation
of fundamental rights,
even if the goal of
fulfilling all people's
needs and entitlements
is not questioned.
N orth and South - is not only caused by the
imperative of meeting basic human needs,
but is also driven by wasteful consumption
in the richer countries or among the well-off
in the poorer countries^
W hate/er judgement is rrade, it isa reality
that governments face very real di I emmas i n
tryi ng si mul taneousi y to sati sfy urgent needs
and advance the real i sati on of fundamental
ri^ts B/en if the goal of fulfilling all
people's needs and entitlements is not
questioned. Notvvithstandingthis the
Commission bdie/esthat
f ul fi 1 1 i ng de/d opment needs
requi res respect for fundamental
ri^ts and not a trade off
between them. We bd ie/ethat
an equitable and sustainable
approach to de/d opment
requi res that a deci si on to bui I d
a dam or any other options nxist
not, attheoutst, sacrifice the
ri ^ts of any ci ti an or g'oup of
affected people.
I n de/d oping its framework and recommen-
dations the C ommi ssi on has sou^t to draw
on the broader trends and de/d opments
that reflect the chang ng contesct and
international de/d opment discourse. Not
all countries will recognisthemsdvesin
these statements and the trends are far more
advanced in some areas than in others
Ne/erthdes5i the Commissi on bdie/esthat
the trends descri bed bdow are not I i mi ted
to any one regi on or g'oup of countri es^ but
have broad rd e/ance. From the perspecti ve
of this shared experience v\e draw attention
to the fol I owi ng d ements of the e/ol vi ng
de/d opment paradigm:
■ The world appears set to move beyond
the growth paradigm, which judged
progress largely in narrow economic
terms, putting a strong premium on
activities that offered a clear economic
return. This does not mean that econom-
ic viability is no longer seen as impor-
tant. If anything it has greater weight
along with a greater sanction on poor
economic performance at company or
country levd. But we are giving greater
value to non-monetary or non-monetised
aspects of devdopment such as the need
to conserve biological diversity protect
cultural values, or consider the needs of
future generations.
We are moving from assessing public
i nterest i n general terms to a focus on
improving equity in the spread of costs
and benefits from devdopment. The
growing disparity between rich and poor
within and across many nations has
fudled doubts about traditional devdop-
ment paths.' T he emergng consensus on
the need for greater transparency and
parti dpati on in de/d opment deci si on-
making is I ikdy to speed up thistransi-
tion considerably The focus on equity
extends to recogi i si ng i ntergenerati onal
equity as an i mportant factor i n deal i ng
with resource access and use.
A n increasingly robust foundation of
international covenants, charters,
declarations and conventions supports
the sharpening focus on equity and
confirms the growing importance of
equity considerations in devdopment. In
particular, a body of international
instruments rdating to human rights is
emerging, together with institutionsto
oversee thdr further devdopment and
application. This will strengthen argu-
ments in favour of greater transparency
participation in decision-making and
accountability for compliance. Pressure
from the human rights community has
had an impact on governments and more
recently on corporations.
204
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
T he definition of public interest is
shifting from one that placed a premium
on overriding interests of economic
growth to one that places more weight
on the rights and interests of people and
communities affected by a development.
T he level of sacrifice that affected people
are expected to endure for an often ill-
defined notion of the greater public good
has been increasingly challenged. Simi-
larly, the recognition that affected
communities, through their sacrifices, are
in fact contributors to development
projects implies a shift in focus from
compensatory approaches to establishing
equitable benefit sharing mechanisms
W e have also witnessed a shift from
technology-driven development choices
towards a more integrated approach to
managing scarce resources with technol-
ogy being but one factor among others in
managing demand and supply of services
more effectively Furthermore, the
recognition that traditional practises and
technologies can achieve great levels of
efficiency in meeting local needs coupled
with the advent of new technology
options has increasingly challenged the
notion that large and centralised systems
are always the most effective and effi-
cient way of meeting demands for water
and energy
T he emerging paradigm provides a new
basis for governance and democratic
decision-making. This stems from a
substantial redistribution of roles and
responsibilities in the public and private
sectors and civil society Many parts of
the world have seen a considerable
migration of national government
authority, in three directions upward to
regional superstructures or international
bodies, downward to provincial and local
government; and outward to the private
sector and civil society.
This is not to say that the
role of governments has
become less important;
but it has changed and
continues to change, with
implications for the way
decisions are taken and
implemented.
■ The private sector has, by
contrast, considerably
expanded its role, undertaking functions
that were until recently the exclusive
remit of government. A pprehensions
about this trend are sharp in some parts
of the world and reflect growing concern
about the diminishing power of citizens
to control corporate activity through
local and national institutions. Pressure
is therefore growing on corporations to
become more accountable to widely
supported standards of social and envi-
ronmental behaviour Such pressure is
likely to mean that corporations will face
steadily rising costs and risksif they fail
to comply with existing rules, regulations
and standards.
■ The role of civil society organisations
has also expanded and their legitimacy in
representing and defending interests in
participating as full actors in decision-
making on development and in monitor-
ing compliance is increasingly accepted.
C ivil society organisations are playing an
increasingly important role in influenc-
ing public opinion and mobilising it
against infringement or non-compliance
with new and emerging standards of
behaviour, especially on the social and
environmental front.
This changing context impliesa broadening
range of concerns that have a legitimate
right to be considered and, therefore, of
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The Report of the World Commission on Dams
205
Chapter 7
actors involved in reaciiing l<ey
development decisions. It will
be increasingly difficult to take
decisions on the narrow basis of
the needs of infrastructure
development. Instead, such
projects need to be considered
as part of the broader process of
economic, social and environ-
mental transformation.
Rights and Risks -
an Improved Tool
for Decision-Making
Both the findings of the WCD Global
Review and the implicationsof the norma-
tive framework summarised in this chapter
demonstrate that the traditional 'balance
sheet' approach of assessing costs and
benefits of a project is an inadequate tool for
effective development planning and deci-
sion-making. T he case of dams clearly
illustrates that development choices made
on the basis of such trade-offs neither
capture the complexity of considerations
involved, nor can they adequately reflect
the values societies attach to different
options in the broader context of sustainable
development.
G iven the significance of rights- related
issues as well as the nature and magnitude of
potential risks for all parties concerned, the
Commission proposes that an approach
based on 'recognition of rights' and 'assess-
ment of risks' (particularly rights at risk) be
developed as a tool for guiding future
planning and decision making (see Figure
7.2). This will also provide a more effective
framework for integrating the economic,
social and environmental dimensions for
options assessment and the planning and
project cycles.
Rights ...
The Global Review highlighted the need for
a more practical and specific approach to
addressing the five values of equity efficien-
cy participatory decision-making, sustaina-
bility and accountability These values form
the foundation of a rights-based approach to
equitable decision-making about water and
energy resources management.
Various types of rights may be relevant in
the context of large dam projects. T hese
include constitutional rights, customary
rights, rights codified through legislation,
property rights or the rights of developers
and investors. T hey can be classified on the
basis of their legal status, their spatial and
temporal reach, or their purpose. In the
spatial and temporal dimensions, one can
distinguish the rights of local, basin, region-
al and national entities, the rights of ripari-
an countries, or the rights of present and
future generations. Regarding the purpose or
subject of rights, one can distinguish rights
to material resources such as land and water,
and rights to spiritual, moral or cultural
goods such as religion and dignity
T his approach highlights the range and
complexity of relevant rights and responsi-
bilities and the reality that rights intersect
and overlap. M echanisms for conflict
resolution, adjudication and independent
arbitration must begin with the assessment
of these rights, entitlements and claims.
T his approach assumes that at the assess-
ment stage, all claims are subject to a fair,
open and transparent review. It is based on
an understanding that no party's rights will
extinguish another's. In fact, where rights
compete or conflict, negotiations conducted
in good faith, offer the only process through
which various interests can be legitimately
reconciled. This suggests an approach to
206
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
water and energy policy that provides for
negotiated processes within a legal and
procedural framework, including arbitration,
recourse and appeal mechanisms to ensure
equitable adjudication in cases where
negotiated settlements are not achievable or
are contested.
C larifying the rights context for a proposed
project is an essential step in identifying
those legitimate claims and entitlements
that might be affected by the proposed
project - or indeed its alternatives. It is also
the basis for effective identification of
stakeholder groups that are entitled to a
formal role in the consultative process, and
eventually in negotiating project-specific
agreements relating, for example, to benefit
sharing, resettlement or compensation.
...and Risks
T he notion of risk adds an important
dimension to understanding how, and to
what extent, a project may impact on such
rights. Traditional practice is to restrict the
definition of risk to the risk of the developer
or corporate investor in terms of capital
invested and expected returns. These
voluntary risk takers have the capacity to
define the level and type of risk they wish to
take and explicitly to define its boundaries
and acceptability. By contrast, as the G lobal
Review has shown, a far larger group often
have risks imposed on them involuntarily
and managed by others. Typically they have
no say in overall water and energy policy,
the choice of specific projects or in their
design and implementation. The risks they
face directly affect individual well-being,
livelihoods, quality of life, even their
spiritual world view and very survival.
This has often led to conflict because it
ignores the principle that those with a
legitimate stake in a decision are best placed
to assess the risks they are prepared to take
to achieve a benefit. Such conflicts are
exacerbated by the absence of an agreed
Box 7.3 Voluntary risk takers and involuntary risk bearers
Public and private developers of large dam projects have long understood that
the sector involves managing risl<s of a technical, financial and even political
nature. Decision-makers have not always acknowledged the differences
between 'taking risk' and 'imposing risk' and between voluntary risk takers and
nvoluntary nsk bearers. The pnvate sector regards dams as high-nsk projects.
As 'voluntary risk takers', private companies manage their increased exposure to
nsk by requiring higher financial rates of return. Their nsk management
procedures are relatively highly developed, using contractual agreements and
sophisticated third party recourse and arbitration mechanisms.
Governments and regulators plan and manage the provision of services to the
nation, and therefore also take nsks. They must weigh the risks inherent in
undertaking dam projects against the risks of not undertaking them. There are
nsks attached to other options, and to the 'do nothing' option, given growing
demand for power or food, and societies are constantly balancing these
different risks and opportunities.
There are those, however, on whom nsk is imposed. The 'involuntary risk
bearers' who are forced to bear risks include people to be displaced by the
project. These people may face years of uncertainty and direct nsks to livelihood
even before the project is approved and before resettlement or land purchase.
They may be unable to obtain finance for investments in farm infrastructure or
equipment, and local government may not maintain or develop services for
communities on the verge of displacement. The nsks to displaced communities
are compounded in cases where they have no say in the decisions but are
obliged to bear the consequences. In these circumstances they often depend
entirely on the capacity of government or the developer to manage the
resettlement or compensation process on their behalf.
ndigenous peoples face specific cultural, social and livelihood risks. Evidence
collected bythe Commission illustrates that they often bear disproportionate
nsks associated with projects, as they were not included in decision-making
processes concerning resettlement, let alone the eariier processes of assessing
needs and selecting options. Downstream communities that depend on existing
nver flows to maintain their resource base are also often not given any say in
deciding the nature of projects. Yet they face the risk of losing access to
resources, or having their capacity to maintain a sustainable livelihood under-
mined. Often these communities do not have access to information on the
nature of the risks that they face until the project is approved or completed,'
The case of future generations and the ecosystem is somevi/hat different. These
'risk bearers' cannot speak for themselves, even if the risks they face are
acknow/ledged. Future risks can be linked to present nsks. The loss of natural
resources can undermine livelihood opport:unities for both current and future
generations. Similariy the loss of biodiversity in the present means that it is
either not available or diminished for future generations. The lower priority
generally accorded to these types of risks is compounded by the absence of
tangible safeguards, orthe failure to implement and enforce those that do exist.
In such cases, as with other involuntary risk bearers, adopting a precautionary
approach is particulariy relevant in orderto avoid impacts. It is also essential to
identify appropriate inputs by interested parties to the options assessment
process and to the planning and project cycles.
The precautionan/ approach articulated in the Rio pnnciples forms part of a
structured approach to the analysis of nsk, and is also relevant to risk manage-
ment. Decision-makers faced with scientific uncert:ainty and public concerns
have a duty to provide answers where nsks and irreversibility are considered
unacceptable by society
The Report of the World Commission on Dams
207
Chapter 7
approach and process for assessing and
negotiating acceptable project outcomes -
outcomes that include rejecting a dam in
favour of a more acceptable alternative.
W here unequal power relationships prevail
and no process for good-faith adjudication
among competing interests exists, the result
is often protracted conflict, escalation and,
eventually, 'win-lose' outcomes in which less
privileged groups are further disadvantaged.
This all-too-common reality points to a
serious failure of the options assessment and
planning process to protect and further basic
human and development rights.
Dealing with risks cannot be reduced to
consulting actuarial tables or applying a
mathematical formula. In the end, as in the
case of rights and entitlements, they must be
identified, articulated and addressed explic-
itly. This will require the acknowledgement
of risk to be extended to a wider group than
governments or developers in order to
include both those affected by a project and
the environment as a public good (see Box
Fig 7.2 From rights and risks to negotiated agreements: a
framework for options assessment and project planning
RIGHTS
Recognition of Rights and Assessment of
Risl<s iead to identification of stal<elioiders
Forum estabiished for needs and options
assessment and project pianning
No consensus
Successfui
mediation and/or
arbitration
Independent
review and
mediation
[Specific agreements are
[negotiated and become part of
(project compliance framework
N 0 agreement leads to
selection of an alternative
project option, arbitration or
judicial review
7.3). M ost important, involuntary risk
bearers must have the legal right to engage
with risk takers in a transparent process to
ensure that risks and benefits are negotiated
on a more equitable basis. To that end, a
framework is required that permits a trans-
parent, balanced and participatory process of
decision-making relating to key stages in the
planning process. In chapters 8 and 9 we
develop the practical application of this
approach in greater detail to illustrate how this
can be achieved at the different stages of
assessment, planning and implementation.
It must, however, be stressed that not all
countries possess the full range of legal and
institutional structures, nor sometimes the
human and financial resources, to imple-
ment such a participatory approach to
decision-making effectively It becomes,
therefore, a high priority to assist those
countries and communities to put the
necessary structures in place and to develop
the necessary capacity
Negotiating Agreements
on tlie Basis of Riglits and
Risl<s
In its Global Review the Commission
encountered considerable experience and
good practice in implementing a rights-based
approach, with examples from many coun-
tries. It is also clear, however, that the
approach requires a legal and procedural
framework that provides for a free and
informed negotiation process. This frame-
work must provide for arbitration, recourse
and appeal mechanisms to ensure equitable
adjudication in cases where negotiated
settlements are not achievable.
While it is easy to point to negotiated
solutions as the answer to sound decision-
making or to avoiding dam related conflict.
208
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
a range of difficult ciiallenges remains to be
faced. Structuring a negotiation process that
will lead to an optimal and widely supported
decision on an option for water and energy
development involves answering three
questions:
■ Who should participate in the decision-
making process?
■ W hat decision-making processes should
be followed?
■ W hat criteria can be applied to assess the
process and its outcomes?
Who should participate?
The rights-and-risks approach is both an
entry point to the options assessment
process and a basis for the subsequent
development of specific project options. T he
recognition of rights and the assessment of
risk identify the interested and affected
parties who possess rights or entitlements as
well as risk takers and bearers. This opens
the way for a negotiated approach that
enables the decision-making process to
assess options and reach project agreements.
T hose whose rights are most affected, or
whose entitlements are most threatened,
have the greatest stake in the decisions that
are taken. The same applies to risk: those
groups facing the greatest risk from the
development have the greatest stake in the
decisions and, therefore, must have a
corresponding place at the negotiating table.
What type of process?
T his chapter has suggested that global
trends are increasingly leading us to deci-
sion-making based on transparent processes,
full access for affected parties to relevant
information, identification and empower-
ment of key stakeholders, and their ade-
quate participation in the decision-making
process. At the same time, the Commission
recognises there is no universal formula.
T he most appropriate decision-making
process will depend to an extent on the type
of development under review, the political
and cultural setting of the development, and
other constraints relating to the urgency of
the need and the likelihood of negative
impacts.
On the other hand a process that is too
complex can needlessly delay decisions and
deprive potential beneficiaries of the fruits
of any of the development alternatives
under consideration. The goal must be a
process that gives all key stakeholders a
voice and a full opportunity to participate in
decision-making, seeks the broadest reason-
able consensus, and is transparent in the
criteria used for reaching a decision. Such a
process is likely to ensure the demonstrable
public acceptance that projects require if
they are to achieve development. H owever,
no process will work unless all of the parties
enter the negotiation in good faith. W ithout
this there is the danger that any attempt to
make the process more inclusive will end up
being a recipe for stalemate, putting the
achievement of needed benefits at risk.
N egotiated outcomes do not replace govern-
ment decision-making: on the contrary, they
rest on the State actively fulfilling its role as
planner and enabler of development choic-
es, as well as its responsiblity to provide
services and safeguard entitlements. W hen
Box 7.4 Good governance and the UN M illennium Report
"Good governance compnses the rule of law, effective state institutions,
transparency and accountability in the management of public affairs, respect for
human rights, and the participation of all citizens in the decisions that affect
their lives. While there may be debates about the most appropriate forms they
should take, there can be no disputing the importance of these principles,"
Source: Annan, 2000
The Report of the World Commission on Dams
209
Chapter 7
a negotiation process results in a
full agreement among the
parties, the government (as one
of the parties) need only en-
dorse it. There will always be
cases, however, where a con-
certed effort of all parties acting
in good faith has brought
agreement closer but left it
unattainable. W here independ-
ent review and mediation fail to foster an
agreement, alternative options should be
considered or the project should go to
arbitration. A II decisions must be taken
within the framework set by constitutions
and national legislation as well as interna-
tional conventions, and remain subject to a
citizen's right to challenge them in the
courts (see Figure 7.2).
Assessing the Process and its
Outcomes
The purpose of engaging in a participatory
process for decision-making isto deliver
better decisions than would otherwise
emerge. T he proof of a decision-making
process resides both in the process used, and
in the outcomes delivered. A process may be
deemed successful if it has been, and has
been seen as:
■ Fair, all key stakeholders perceive the
process and outcomes to be fair and
legitimate.
■ Wise: the process is fully-informed,
making best use of available knowledge,
and continuing to make best use of
knowledge over time.
■ Efficient: the process and the solution are
both cost- and time-effective, making
best use of available resources.
■ Stable: the agreement is likely to endure
and can be adapted - a sign that it
maintains its legitimacy^
I n C hapter 9, the C ommi sa on de/d ops
cri teri a and gui del i nes to i 1 1 ustrate how this
can be achie/ed at the different stages of
assssment, planning and implementation.
Conclusion
Large dams have increasingly been charac-
terised by bitter conflict and deep feelings of
resentment and injustice. Beginning to
correct this situation will require not only
new processes for taking decisions, but
building confidence in these processes and
their ability to deliver genuinely better
outcomes for water and energy resource
development. In seeking to build this
confidence we do not, in many cases, begin
with a clean slate, but with a difficult legacy
that needs to be recognised. This legacy can
only be overcome if there is a rapid invest-
ment of confidence in the legitimacy of the
processes that are put in place.
T his C hapter has defined the interaction
between the Commission's findings and the
global development debate. It has pointed
out that the debate on large dams is not
taking place in isolation from the broader
debate on the purposes and pathways of
development. It can clearly be situated
within a framework relating to human
rights, the right to development, and the
imperative of sustain ability.
Further, the C ommission has sought to
demonstrate that an approach based on the
recognition of rights and assessment of risks
can lay the basis for greatly improved and
significantly more legitimate decision-
making on water and energy development.
This is an effective way to determine who
has a legitimate place at the negotiation
table and what issues need to be included on
the agenda.
210
Damsand Development: A New Framework for Decision-M aking
Enhancing Human Development
Finally, it has concluded that only decision-
making processes based on the pursuit of
negotiated outcomes, conducted in an open
and transparent manner and inclusive of all
legitimate actors involved in the issue, are
likely to resolve the many and complex
issues surrounding dams. W hile presenting
greater demands at early stages of options
assessment and project design, such process-
es lead to greater clarity certainty and
legitimacy for subsequent steps in decision-
making and implementation.
Endnotes
1 The W CD received submissions from a wide
range of interested parties, which have been
listed on the W CD web site. A number of
these were presented at the four regional
consultations, which the Commission held In
C olombo, Sao Paulo, Cairo and H anol.
2 UN, 1947.
3 UN, 1986.
4 UNCED,1992.
5 Recent reports summarising the Implications
of high levels of consumption on the natural
resource base Include the Report of The
World Commission on Water (World Com-
mission on Water In the 21st Century, 2000),
the World Energy A ssessment (UNDP et al,
2000) andTheWorld'sWater (Gleick, 2000).
6 An overview of this discourse can be found In
Sen, 1999. Current data and evolving policy
frameworks for addressing poverty and equity
Issues have also been reviewed In the latest
World Development Report (World Bank, 2000)
which focuses on poverty and development.
7 Cernea, 2000, has developed a detailed
assessment of these risks. The 'Impoverish-
ment Risk A nalysis' approach Is referred to In
greater detail In Chapter 9.
8 Susskind and Crulkshank , 1989.
The Report of the World Commission on Dams
211
Chapter 8
Strategic Priorities -
A N ew Policy Framework for the Development
of Water and Energy Resources
Based on the findings of f/ie
WCD'sGlobalRe/iewthis
cfiapter develops the C ommission 's
rationale and recommendations in
the form of seven strategic priorities
and related policy principles for
future decision-making 1 1 builds on
previous chapters starting with
C hapter 1 which locates the dams
debate in a broader context. T his
context includes the history of water
resources management and large
dams the big increase in dam
construction during the latter half of
the 20^^ CBitury thesutmquet
mw^icecfoonfiictdndtheisajes
Chapter 8
and interests that gave rise to the establish-
ment of the Commission.
C hapter 8 draws extensively on the Know-
ledge Base summarised in C hapters2 to 6
which review the performance and impacts
of dams, the decision-making process and
the available options for providing water
and energy services. M uch of this work
involved reviewing existing information,
but the Commission also collected impor-
tant new information on all aspects of dams
operation and management, especially their
social and environmental impacts. T he wide
range of consultations with affected parties
is an important contribution to knowledge
about dams in development and develop-
ment practice in general.
In Chapter? the Commission moved from
the review of past experience to look at
directions for the future. T he chapter
addresses the dams debate i n the context of
the wider debate on equitable and sustainable
development and the corresponding frame-
work of internationally accepted norms and
standards. It introducestherights-and-risks
Figure 8.1 The WCD's seven strategic priorities
Gaining Compreliensive
pubiic options
acceptance assessment
Ensuring a 4 rivf^'a^id
compiiance - \..^ iiveiihoods
Recognising
entitiements
and sliaring
benefits
approach for achieving negotiated outcomes.
Chapter 8 takes this forward, moving from a
traditional top-down, technology focused
approach to advocate significant innovations
in assessing options, managing existing dams,
gaining public acceptance and negotiating and
sharing benefits
T he C ommission sets out this constructive
and innovative way forward for decision-
making in the form of the seven strategic
priorities listed here and elaborated in subse-
quent sections of the chapter (see Figure 8.1) .
The priorities are:
■ Gaining Public Acceptance
■ Comprehensive Options Assessment
■ A ddressing Existing Dams
■ Sustaining Rivers and Livelihoods
■ Recognising Entitlements and Sharing
Benefits
■ Ensuring Compliance
■ Sharing Rivers for Peace, Development
and Security
A key message and a set of policy principles
support each of the seven strategic priorities.
T hey are expressed in the form of achieved
outcomes. A section on the rationale explains
the Commission's thinking on each strategic
priority and an elaboration looks at broader
issues involved in achieving the strategic
priority. T hese strategic priorities provide
guidelines for all affected parties on a new way
forward - one that is founded on achieving
equitable and sustainable development
through a process that successfully integrates
social, economic and environmental consider-
ations into decision-making on large dams and
their alternatives.
Chapter 9 provides an operational approach
for applying these priorities to the planning
and project cycles.
214
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
Strategic Priority 1
Gaining Public Acceptance
Key Message
Public acceptance of key decisions is essential for equitable and sustainable water and
energy resources development. Acceptance emerges from recognising rights, addressing
risks, and safeguarding the entitlements of all groups of affected people, particularly indig-
enous and tribal peoples, women and other vulnerable groups. Decision-making processes
and mechanisms are used that enable informed participation by all groups of people, and
result in the demonstrable acceptance of key decisions. Where projects affect indigenous
and tribal peoples, such processes are guided by their free, prior and informed consent.
Effective implementation of this strategic priority depends on applying these policy principles:
1.1 Recognition of riglits and assessment of risl<s
are tlie basis for tlie identification and
inclusion of stakeholders in decision-making
on energy and water resources development,
1.2 Access to information, legal and other support
Is available to all stakeholders, particularly
indigenous and tribal peoples, women and
other vulnerable groups, to enable their
informed participation in decision-making
processes.
1.3 Demonstrable public acceptance of all key
decisions is achieved through agreements
negotiated in an open and transparent
process conducted in good faith and with the
informed participation of all stakeholders
1.4 Decisions on projects affecting indigenous and
tribal peoples are guided bythelrfree, prior
and informed consent achieved through
formal and Informal representative bodies
Rationale
Because of their scale and complexity, dams
affect the existing rights of different groups
and create a wide range of significant risks
for a diverse range of interest groups.
A mong those affected are indigenous and
tribal peoples, women and other vulnerable
groups who have been shown to suffer
disproportionately. T his has been com-
pounded by negligible participation of these
groups in decision-making processes, with
the result that planning processes for large
dams have frequently overlooked gender and
equity aspects. T he vulnerability of these
groups stems from the failure to recognise, or
respect their rights, and from the significant
involuntary risks imposed on them.
Failure to recognise the rights of all affected
groups, whether legally sanctioned or not,
coupled with the significant involuntary risk
imposed on the most vulnerable, is central
to the dams debate and associated conflicts.
To be socially legitimate and produce
positive and lasting outcomes, development
projects should provide for
greater involvement of all
interested parties. A fair, in-
formed and transparent decision-
making process, based on the
acknowledgement and protection
of existing rights and entitle-
ments, will give all stakeholders
the opportunity to fully and
actively participate in the
decision-making process. Instead
of exacerbating existing inequali-
ties, water and energy resources
development should be opportu-
nities for achieving a high level
A fair, informed and
transparent decision-
maldng process, based
on tlie
acl<nowledgement and
protection of existing
riglits and entitlements,
will give all
stakeholders the
opportunity to fully and
actively participate in
the decision-making
process.
The Report of the World Commission on Dams
215
Chapter 8
Identifying riglits and r/sks
and recognising how they
affect different parties gives
planners an objective basis
for identifying stalcetiolders.
of equity. The planning process should be
sensitive to, and take account of, social and
economic disparities, and devise and imple-
ment mechanisms for addressing them.
Recognising indigenous and tribal
people's rights
International and national policy making
increasingly recognise that historical and
continuing wrongs committed against
indigenous and tribal peoples call for
distinct measures to protect their rights.
These measures include the free, prior and
informed consent of indigenous and tribal
peoples to developments that may affect
them. To achieve this, the participation of
indigenous and tribal peoples must become
an integral part of the decision-making
process. This is increasingly being recog-
nised in international and national law.
International legal instruments, such as
C onventions 107 and 169 of the I nterna-
tional Labour 0 rganisation and the evolv-
ing U nited N ations D raft D eclaration on the
Rights of Indigenous Peoples, recognise and
support the concept of free, prior and
informed consent. Other
organisations reflect this
trend including the I nter-
A merican Development
Bank through its operational
policy which requires
informed consent of indige-
nous and tribal peoples to
resettlement and compensa-
tion measures. Similar reforms are found at
national level in a number of countries.^
T h rough acknowl edg ng the ri ghts of
vul nerabi e g'oupsj and provi di ng for thd r
full and active participation in the decision-
nuking procesiSi all the risks associated with
a decision can be addressed. Requiring the
free, prior and informed consnt of indige-
nous and tribal peoplesempovversthemat
the negotiati ng table.
N egoti ati ons conducted i n good fai th that
I ead to an ag'eed outcome v\oul d secure
wi der acceptance of de/d opment pol i ci es
and projects
Elaboration of Policy Principles
1.1 Recognition of rights and assessment
of risks are the basis for the identifica-
tion and inclusion of stakeholders in
decision-making on energy and water
resources development.
W ater and energy resource development
projects can affect the existing rights of
community groups in many different ways
and can lead to a variety of risks. Legal and
customary rights take many forms, including
livelihood, resources, habitat, social net-
works and cultural heritage. Recognising
this variety makes it possible to identify the
risks facing communities.
Identifying rights and risks and recognising
how they affect different parties gives
planners an objective basis for identifying
stakeholders. T hese stakeholders must
participate fully and actively in the deci-
sion-making process and be party to all
negotiated agreements throughout the
process, from options assessment to final
implementation, operation and monitoring.
T he involvement of women and other
vulnerable groups in decision-making should
be ensured at all stages of the planning and
implementation process. There should be
clear consideration for the vulnerabilities
that expose women to project impacts
(displacement, changes in the resource base
and resulting disruptions of social and eco-
nomic resources and networks) and for the
specific obstacles that reduce their opportuni-
ties to share benefits generated by the project.
216
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
A t the needs and options assessment stage,
strategic impact assessment enables identifi-
cation of stal<eholders. Impoverishment risk
assessment conducted at the pre-feasibility
stage will enable identification of stakehold-
ers bearing risk voluntarily and involuntarily
for participation in the decision-making
process.
1.2 Access to information, legal and
other support is available to all
stakeholders, particularly indigenous
and tribal peoples, women and other
vulnerable groups, to enable their
informed participation in decision-
making processes.
Various stakeholders have significantly
different capacities to participate fully and
actively in the development planning
process. Rural communities, indigenous and
tribal peoples, women and other vulnerable
groups are at a disadvantage in accessing legal
and financial resources and in their capacity to
participate in negotiating decisions.
In order for these groups to participate fully
and actively in negotiations, they need
access to adequate resources, including legal
and other professional support. Communi-
ties also need sufficient time to examine
various proposals and to consult amongst
themselves.
Resources committed to achieving these
ends must target a continuing process of
capacity building.
1.3 Demonstrable public acceptance of
all key decisions is achieved through
agreements negotiated in an open
and transparent process conducted
in good faith and with the informed
participation of all stakeholders.
Participatory processes need to secure public
acceptance of plans and projects for water
and energy resources development. To
achieve mutually agreed outcomes, stake-
holders should negotiate through recognised
stakeholder bodies. Public acceptance of the
decision reached by stakeholders through
this process should guide progress at key
stages in the assessment, selection, planning
and implementation of the project.
The following key principles define the
nature of open and transparent decision-
making processes. The process:
■ is democratic, accountable and enjoys
public confidence;
■ safeguards the rights and entitlements of
vulnerable groups by addressing imbal-
ances in political power;
■ promotes women's participation and
gender equity;
■ is guided by the free, prior and informed
consent of indigenous and tribal peoples;
and
■ is based on the willing participation of
all parties negotiating in good faith
throughout all key stages, from options
assessment to final implementation,
operation and monitoring.
N egotiations should result in demonstrable
public acceptance of binding formal agree-
ments among the interested parties with
clear, implementable institutional arrange-
ments for monitoring compliance and
redressing grievances.
A stakeholder forum can facilitate this
process. This forum could bean existing
planning institution located at the local,
sub-national and national levels. Countries
that already have such planning institutions
must ensure representation of rural commu-
nities, indigenous and tribal peoples and
other stakeholders in them. Countries
The Report of the World Commission on Dams
217
Chapter 8
Demonstrating public
acceptance, and
uptiolding negotiated
decisions, is best
ach/eved tlirougti
binding and formal
agreements.
without such planning institutions should
consider creating a stakeholder forum for
the purpose (see C hapter 9 for guidelines).
Negotiating agreennents
Reaching a negotiated agreement may need
assistance from an agreed independent third
party from time to time. This assistance is
best provided through an independent
dispute resolution body that:
■ is constituted with the participation and
agreement of stakeholders; and
■ has the necessary skills, legal and admin-
istrative capacity for this purpose.
This body should agree on a negotiating
process with all stakeholders at the outset.
Stakeholders should refer
disagreements on any aspects of
the negotiations to this body to
examine them and provide
assistance to the parties. This
includes determining whether
stakeholders are negotiating in
good faith and suggesting ways
of reaching a settlement.
Demonstrating public acceptance, and
upholding negotiated decisions, is best
achieved through binding and formal agree-
ments. They must include mechanisms for
hearing and settling subsequent grievances.
The Commission recognises that coercion
and violence have been used against com-
munities affected by dams. A II project
proponents - public and private - need to
commit to the strict prohibition of such acts
of intimidation against any stakeholders.
1.4 Decisions on projects affecting
indigenous and tribal peoples are
guided by their free, prior and
informed consent achieved through
formal and informal representative
bodies.
International law includes a body of con-
ventions and customary norms that increas-
ingly recognise the rights of indigenous and
tribal peoples. Aspects of the national laws
of many countries now reflect contemporary
views of indigenous rights.^
Some of these changes are a di rect response
to indigenous peoples: campaigisdemand-
i ng soci al j usti ce and de/d opment opportu-
nity- indudingcampaigis concerning
dams. H owB/er, these provi si ons have not
been very successful i n protecti ng the rights
of indigenous and tribal peoples
To the extent that historical and preant
i nj usti ces conti nue to deny i ndi genous and
tri bal peopi es the ri ^t to si f-determi na-
ti on, countri es i ncreasi n^ y recogni s that
they are entitled to distinct measures to
protect their rights This recognition has
i ncl uded prescri pti ons of non-di scri mi na-
tion, cultural integ'ity control overland
and resources sxial welfare and develop-
ment and self-government.
Identification of indigenous and tribal
peoples
Several countries have clear laws and
procedures identifying and recognising
indigenous and tribal peoples. H owever, the
situation is unclear in some other countries.
A t its broadest, the adjective 'indigenous' is
applied to any person, community or being
that has inhabited a particular region or
place prior to colonisation. H owever, the
term 'indigenous peoples' has gained curren-
cy internationally to refer more specifically
to long-resident peoples, with strong cus-
tomary ties to their lands, who are dominat-
ed by other elements of the national society
T he general trend in the U nited N ations
and other international organisations has
218
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
been to accept that many of the so-called
'tribal peoples' of Africa, Asia and the
Pacific are indistinguishable from indige-
nous peoples as far as international law and
standards are concerned.^ The International
Labour Origanisation's( I LO) Convention
169 appi iesto both i ndigenous and tri bal
peoples and thus i ncl udes n^ny such
peopi es from A si a and A f ri ca. 1 1 ascri bes the
same ri^tsto both categories without
discrimination. Article 1(2) of ILO Con-
vention 169 notes 'Self- identification as
i ndi genous or tri bal shal I be regarded as a
fundamental criterion for determi ni ng the
groups to whi ch the provi si ons of thi s
Convention apply'
I n countries that do not explicitly define
i ndi genous and tri bal peopI es the C ommi s-
sion proposes an alternative approach for
identifying them. Se/eral international
organ i sati ons and agenci es have adopted or
proposed this approach which uses the
criteria listed below to recognise indigenous
and tribal peoples' In terms of this ap-
proach, the requirements for free, prior and
i nformed consent should apply to g'oups
that sati sfy the fol I owi ng cri teri a:
■ H istorical continuity with pre-colonial
societies, which is determined on the
basis of the following criteria, regardless
of whether they are formally recognised
as indigenous or tribal peoples or not:
■ Subsistence oriented and natural
resource based production systems
■ Presence of customary social and
political institutions
■ An indigenous language, often
different from the national language
■ An experience of subjugation, exclusion
or discrimination, whether or not these
conditions persist.
■ Vulnerability to being disadvantaged in
the development process.
■ C lose attachment to ancestral territories
and to natural resources in such areas.
■ Self-identification as distinct from the
dominant group or groups in societies,
and identification by others as members
of a distinct group.
Securing free, prior and informed consent
The requirement for free, prior and in-
formed consent gives indigenous and tribal
communities the power to consent to
projects and to negotiate the conditions
under which they can proceed. The effec-
tive implementation of this practice marks a
significant step forward in recognising the
rights of indigenous and tribal peoples,
ensuring their genuine participation in
decision-making processes and securing
their long-term benefits.
The concept of free, prior and informed
consent achieved through formal and
informal representative bodies should guide
decision-making on dams and their alterna-
tives. M oreover, the C ommission believes
that all countries should be guided by the
concept of free, prior and informed consent,
regardless of whether it has already been
enacted into law.
Failing that, decisions should only be made
following a process of good faith negotia-
tions that allows for the effective represen-
tation of the peoples' concerned, including
genuine attempts to reconcile differences
through the mutually agreed dispute resolu-
tion process, with disagreements being
referred to a designated judicial body.
T he customary laws and practices of the
indigenous and tribal peoples, national laws
and international instruments will guide the
The Report of the World Commission on Dams
219
Chapter 8
manner of expressing consent. A t the begin-
ning of the process, the indigenous and tribal
peoples will indicate to the stake-holder forum
how they will express their consent to deci-
sions. A final agreement on how to express
consent will be reached before the start of the
planning process.
220
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
Strategic Priority 2
Comprehensive Options Assessment
Key Message
Alternatives to dams do often exist. To explore these alternatives, needs for water, food
and energy are assessed and objectives clearly defined. The appropriate development
response is identified from a range of possible options. The selection is based on a compre-
hensive and participatory assessment of the full range of policy, institutional, and technical
options. In the assessment process social and environmental aspects have the same signifi-
cance as economic and financial factors. The options assessment process continues through
all stages of planning, project development and operations.
Effective implementation of this strategic priority depends on applying these policy principles:
2.1 Development needs and objectives are
clearly formulated through an open and
participatory process before the Identifica-
tion and assessment of options for water
and energy resource development.
2.2 Planning approaches that take Into
account the full range of development
objectives are used to assess all policy,
institutional, management, and technical
options before the decision Is made to
proceed with any programme or project,
2.3 Social and environmental aspects are given
the same significance as technical.
economic and financial factors in assess-
ing options.
2.4 Increasing the effectiveness and
sustalnablllty of existing water. Irrigation,
and energy systems are given priority In
the options assessment process.
2.5 If a dam Is selected through such a
comprehensive options assessment
process, social and environmental
principles are applied In the review and
selection of options throughout the
detailed planning, design, construction,
and operation phases.
Rationale
Dams have delivered benefits to society, but
liavealso caused serious social and environ-
mental harm. M any of the controversies
over dam projects have focused attention on
whether a dam was the most appropriate
response to a development need or objec-
tive, and whether these were correctly
identified in thefirst place. In some cases
project objectives were not clearly stated,
particularly in relation to broader national
and local development goals. In others, the
decision to proceed with a dam was taken
before considering all options or following
strong backing from specific constituencies
that undermined options assessment. This
failure to assess strategic options rigorously
at an early stage has led to a number of
disputes.
Often damstakea longtime to come on
stream, delaying the delivery of benefits
Because they are high cost investments they
divert resources and can exclude other options
that may be able to deliver benefits more
quickly. These options include
demand side management,
alternative supply side technolo-
gies and improving and expanding
the performance of existing
systems. T here are also some new
options reaching the stage where
they can compete in the market,
for example renewable technolo-
gies for electricity generation such
as wind and solar power.
Options assessment involves determining the
relevance of individual options or a mix of
Options assessment
involves determining the
relevance of individual
options or a mix of
options to respond to
development needs in a
specific location.
The Report of the World Commission on Dams
221
Chapter 8
An ear/y focus on
options assessment can
reduce delays and
additional costs and
conflicts, benefiting all
those affected by a
project.
options to respond to develop-
ment needs in a specific location.
The challenge is to assess a wider
ran ge of al tern ati ves earl i er i n th e
process. Experience has shown
that this needs to be done in a
transparent and participatory
manner ensuring that human,
social, environmental, technical
and financial considerations get equal weight
in thefinal decision. The increased availabili-
ty of information about the expanding range
of alternatives provides a sound base from
which to draw.
A n early focus on options assessment will
exclude most questionable projects. T hose
that emerge will enjoy wider public support
and legitimacy. It can reduce delays and
additional costs and conflicts, benefiting all
those affected by a project. In addition to
social and environmental advantages,
increased investment in options assessment
can result in long term economic and
financial benefits.
T he outcome may not be as simple as 'build
a dam' or 'do not build a dam', but could be
a set of parallel and complementary inter-
ventions that together meet the defined
goals. W here a large dam is selected, there
are a number of options within the project
that can avoid, minimise and mitigate
adverse social and environmental impacts.
T hese options relate to altering the size and
location of the project and designing
appropriate operating rules.
Elaboration of the Policy
Principles
2.1 Development needs and objectives are
clearly formulated through an open
and participatory process before the
identification and assessment of
options for water and energy resource
development.
Strategic Priority 1 presents a new perspec-
tive on identifying development needs based
on recognising rights and assessing risks. It
integrates the planning function of govern-
ments in the water and energy sectors with
local processes to determine needs. This is
consistent with a move towards a more
strategic planning process that identifies
options to meet expressed needs.
N ational policy statements on water re-
sources, agriculture, energy and the environ-
ment should embody guiding principles that
facilitate a more open process of needs
assessment. Policy formulation should be a
participatory process that lays the founda-
tion for the involvement of affected groups
throughout later stages of needs and options
assessment.
Effective participation depends on locally
appropriate processes that define the form of
participation and the method for consolidat-
ing needs identified at local, sub-national
and national level. Institutions or bodies
representing communities should be clearly
defined. Strategic Priority 5 discusses other
key attributes of participation. The needs
assessment will provide a framework for
assessing options and linking expressed
needs to development objectives for specific
beneficiary groups.
2.2 Planning approaches that take into
account the full range of development
objectives are used to assess all policy,
institutional, management, and techni-
cal options before the decision is made
to proceed with any programme or
project.
Once the planning process has clearly
defined needs, development objectives and
intended beneficiaries, it will need mecha-
nisms to assess the appropriateness of
options and for the participation of stake-
holder groups. A ssessing options should start
222
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
early in the planning process and can be
incorporated into master plans and sector
plans using strategic impact assessments and
other planning tools. Comprehensive
options assessment must precede selection of
any specific development plan, whether it
includes a dam or an alternative.
T he range of options being examined at the
outset will be broad and go beyond techni-
cal alternatives to consider relevant policy,
programme and project alternatives. It
should also consider:
■ institutional changes and management
reforms that could influence consump-
tion patterns, reduce demand, and affect
the viability of other supply options;
■ the river basin context, cumulative
impacts and interactive effects, including
the interaction between surface and
groundwater resources;
■ multipurpose functions of alternatives;
■ secondary local and regional develop-
ment effects of alternatives;
■ subsidies that can distort comparison of
alternatives;
■ life cycle analysis to compare electricity
generation alternatives; and
■ the gestation period required before
benefits are delivered.
A major consideration in selecting options
is assessing institutional capacity for imple-
mentation. If capacity is weak for a particu-
lar option, and strengthening measures or
external support are not viable, then the
option should be rejected.
M ulti-criteria analysis is a mechanism for
options assessment. Selection criteria used
in the analysis must explicitly reflect how
each option affects the distribution of costs,
benefits and impacts for each stakeholder
group and how it responds to development
objectives. T he reasons for rejecting options
should be clear to stakeholders.
2.3 Social and environmental aspects are
given the same significance as techni-
cal, economic and financial factors in
assessing options.
Future decision-making must increase the
significance of social and environmental
considerations, bringing them to the fore-
front of the screening process as is already
the practice in some countries.
T he focus must shift from mitiga-
tion and compensation to make
avoidance and minimisation of
social and environmental impacts
fundamental criteria guiding
options assessment. This ap-
proach will give society a better
chance to set thresholds for what
is acceptable and what is not, to
consider long term priorities, and to reject
optionsthat are unlikely to meet avoidance
and minimisation principles. Stakeholders
must agree on guiding principles to mitigate
and compensate for the social and environ-
mental consequences of optionsthat remain
on the table before taking further decisions.
Environmental issues needing consideration
include impacts on natural ecosystems and
water quality and the implications of the
different options for local, regional and
transboundary effects. For example recent
research shows that some reservoirs emit
greenhouse gases. With climate change
emerging as a key factor in decisions on
energy options, reducing greenhouse gas
emissions and maintaining climate stability
requires a concerted global response.
Each case is location specific and informed
decisions need an enhanced local knowl-
edge base on social and environmental
factors. Requirements include:
Avoidance and
minimisation of social
and environmental impacts
must become fundamental
criteria guiding options
assessment.
The Report of the World Commission on Dams
223
Chapter 8
■ social and ecosystem baseline studies at
an early stage to describe existing condi-
tions and resource endowment;
■ determination of the relative weighting of
environmental and social aspects in
relation to technical, economic and
financial aspects through an open process;
■ a strategic impact assessment to deter-
mine environmental, social, health and
cultural heritage impacts of alternatives
and reject inappropriate alternatives at
an early stage; and
■ explicit assessment of future net green-
house gas emissions of a project.
2.4 Increasing the effectiveness and
sustainability of existing water, irriga-
tion and energy systems are given
priority in the options assessment
process.
Planning must give priority to making
existing water, irrigation, and energy systems
more effective and sustainable before talcing
a decision on a new project. T he potential is
highly location specific, therefore assess-
ment will require detailed in-country
reviews that cut across sectoral boundaries
and go beyond technical responses to
include consideration of policy options. The
management of existing water and energy
systems will require a more pro-active and
integrated response in order to achieve these
gains. Strategic Priority 3 covers services
provided by existing dam projects which are
a subset of existing water and energy sys-
tems.
The energy sector can apply a range of
measures to encourage more efficient
production, lower distribution losses and
reduce consumption. Similar opportunities
exist to use alternative supply sources and
conservation measures to provide water
supplies for disadvantaged communities.
In the irrigation sector, enhancing existing
systems by fulfilling undeveloped potential
and increasing the productivity of water
offers the best alternative to new construc-
tion. However, improving existing systems
does not necessarily help to address the
needs of the poorest sections of society. T he
options assessment process needs to consider
alternative means to increase livelihood
opportunities and local food security. This
should include an objective assessment of
the potential for local community based
projects and other alternative or comple-
mentary measures.
2.5 If a dam is selected through such a
comprehensive options assessment
process, social and environmental
principles are applied in the review and
selection of options throughout the
detailed planning, design, construc-
tion, and operation phases.
Following a decision to proceed with a dam
project, decisions must betaken to deter-
mine its precise location, alignment and
height, the availability and sources of
construction materials, the impact of the
construction process, the operational
characteristics of the proposed dam, and the
details of water and power distribution
systems. Each of these decisions has further
sets of alternatives. T he process adopted for
selecting alternatives requires the same
multi-criteria approach proposed for the
earlier stages of options assessment. It must
give due prominence to social and environ-
mental considerations and to participatory
processes for decision-making. Principles
agreed during the initial screening of
options remain relevant when deciding on
options relating to the project development
and operations phases. Strategic Priorities 1,
4 and 5 provide further guidance on these
matters.
224
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
Strategic Priority 3
Addressing Existing Danns
Key Message
0 pportunities exist to optimise benefits from many existing dams, address outstanding social
issues and strengthen environmental mitigation and restoration measures. Dams and the context
in which they operate are not seen as static over time. Benefits and impacts may be transformed
by changes in water use priorities, physical and land use changes in the river basin, technological
developments, and changes in public policy expressed in environment, safety, economic and
technical regulations. M anagement and operation practices must adapt continuously to changing
circumstances over the project's life and must address outstanding social issues.
Effective implementation of this strategic priority depends on applying these policy principles:
3.1 A comprehensive post-project monitoring and
evaluation process, and a system of longer-
term periodic reviews of the performance,
benefits, and impacts for all existing large
dams are Introduced.
3.2 Programmes to restore. Improve and optimise
benefits from existing large dams are Identi-
fied and Implemented. Options to consider
Include rehabilitate, modernise and upgrade
equipment and facilities, optimise reservoir
operations and Introduce non-structural
measures to Improve the efficiency of delivery
and use of services.
3.3 Outstanding social Issues associated with
existing large dams are Identified and
assessed; processes and mechanisms are
Rationale
M ost large dams that will operate in the 21*
century al ready exi st. A n urrt)er of countri es
have not real ised the ful I benefits of existi ng
I arge dams because of:
■ incomplete investments in delivery
systems;
■ lack of integration with associated
systems such as local and national grids
and agricultural extension services;
■ lack of equity consideration in allocation
of project benefits;
■ poor maintenance; and
■ ineffective and outdated management.
I n other cases, dam owners have not made
regular investments in monitoring, ongoing
developed with affected communities to
remedy them.
3.4 The effectiveness of existing environmental
mitigation measures Is assessed and
unanticipated Impacts Identified; opportuni-
ties for mitigation, restoration and enhance-
ment are recognised. Identified and acted
on.
3.5 All large dams have fonnallsed operating
agreements with time-bound licence
periods; where re-planning or rellcensing
processes Indicate that major physical
changes to facilities or decommissioning,
may be advantageous, a full feasibility study
and environmental and social Impact
assessment Is undertaken.
maintenance, modernisation and renovation
due to institutional or financial limitations.
I n many settings owners have not done
systematic assessments of opportunities for
optimising or expanding facilities to im-
prove the services existing dams provide.
Opportunities to improve the efficiency
environmental and social performance of
existing dams and optimise their benefits
must be taken. One of the most striking
features is the persistence of social and
environmental problems arising from past
projects. Often promises of compensation
and other benefits like local power supply
and social amenities for resettled and host
communities have not been kept. In many
cases such promises were informal, making
The Report of the World Commission on Dams
225
Chapter 8
Retrofitting existing
dams witf) more
efficient, modern
equipment and control
systems has ach/eved
significant
improvements in
benefits, extending
facilities and
optimising operations.
compliance more difficult to
achieve. Governments, industry
and dam owners also recognise,
often informally, that past
mistakes should not be repeated;
yet they remain as an unresolved
legacy
TheWCD Knowledge Base
provides many examples where
the services provided by older
dams have been restored or
extended in time. In many other
cases retrofitting existing dams with more
efficient, modern equipment and control
systems has achieved significant improve-
ments in benefits extending facilities and
optimising operations
The recent trend to optimise reservoir
operations for new and older dams using
decision support systems backed by more
accurate and timely data on river flows is
particularly relevant. W hile opportunities
must be assessed on a case-by-case basis
good practice is to consider such measures as
a 'new supply option' where they
present significant, cost effective
opportunities
Experience shows that, condi-
tions permitting, this approach
can increase hydroelectric
benefits by 5 to 10% over rule-
based operating criteria without
adversely affecting other water
uses This is a trend in Canada,
the U nited States and Europe where opera-
tors are seeking full benefits from existing
assets in response to power sector deregula-
tion and competition. I n some cases opti-
mising operations of a system of dams can
postpone the need for new projects T hese
experiences are not confined to developed
countries^
Finally, it is evident that many existing
dams do not have formal operatingag'ee-
mentSi licences or concesaonSi particularly
i n the case of publ iciy ovvned i rrigation and
water suppi y dams W i der parti ci pati on i n
i mportant management and operational
deci si ons requi res cl ear procedures and
supporting legal mechanismSi especially
when such deci si ons transform or transfer
benefi ts and i mpacts The absence of
I i cences or formal i sed agreements removes
the opportunity for public input and ac-
countabi I i ty W here they do exi st, I i cences
and other ag'eements often lack clear
performance targets I i mi ti ng publ i c parti ci -
pation at re-licensing re/iews
3.1 A comprehensive post-project monitor-
ing and evaluation process, and a
system of longer-term periodic reviews
of the performance, benefits, and
impacts for all existing large dams are
introduced.
TheWCD Knowledge Base shows that
historically few comprehensive post-project
evaluations have taken place after the
commissioning of large dams This applies to
virtually all regions and countries With few
exceptions there has been little or no
monitoring of the physical, social and
environmental effects of dams a necessary
input for such evaluations W here post-
project assessments have been undertaken,
they have occurred many decades after
construction usually with a narrow technical
focus and little input from stakeholders
TheWCD Knowledge Base reveals that
many unforeseen technical, social and
environmental issues emerge during the
commissioning phase and the first few years
of operation. M ore intensive monitoring,
extending from the construction phase
through the first few years of operation,
followed by a comprehensive post-project
226
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
evaluation after 3 to 5 years involving
affected stakeholders, will help to identify
and resolve many early problems. The
evaluation will encourage compliance with
all commitments and provide a milestone to
verify public acceptance. The first post-
project evaluation should help confirm and
strategically focus the longer-term monitor-
ing programmes and provide 'lessons learnt'
for future decisions about planning, design
and operations of the dam.
Because the economic life of a dam may
span many generations, it is necessary to
review the project operation periodically in
light of the needs it is intended to meet, and
the services it can provide. T hese periodic
evaluations at intervals of 5 to 10 years
should be comprehensive, integrated,
cumulative and adaptive. W here dams are
part of a larger river basin and regional
development scheme, the evaluations
should take into account basin-level evalua-
tions of all project and programme compo-
nents linked to the dam that affect the
environment and society (see Strategic
Priority 4).
Enabling conditions for evaluations are
context specific and measures should build
on existing capacities. For many existing
dams this will be the first evaluation of this
nature and institutional resistance to
transparency may need to be overcome.
Licensed private sector operators may regard
some aspects of the operation as proprietary
commercial information. A n essential first
step is for governments, or their regulatory
agencies, to clearly specify the requirements
for monitoring and evaluation in the
appropriate regulations, project licences and
operating agreements.
G overnment guidelines need to clearly
define roles of dam owners and operators
and stakeholders who will participate in the
evaluations and set out the resources and
means for stakeholder input and interaction.
U pgrading monitoring capacity will pose
challenges in many countries due
to the costs and operation of
instruments and data systems,
and because agencies other than
the dam owners and operators
may be involved. C lear responsi-
bilities that build on existing
capacities need to be defined and
financial resources provided.
D am operators and the agencies
involved should publish monitoring results
annually, and make results freely accessible
to all stakeholders.
3.2 Programmes to restore, improve and
optimise benefits from existing large
dams are identified and imple-
mented. 0 ptions to consider include
rehabilitate, modernise and upgrade
equipment and facilities, optimise
reservoir operations and include non-
structural measures to improve the
efficiency of delivery and use of
services.
M any industrialised countries are focusing
on rehabilitation and modernisation to
restore or extend the economic life of
existing dams. In the last decade, many dam
owners have implemented techniques for
optimising reservoir operations, especially
for dams generating electricity. T hey are
considering other measures to improve
performance and safety such as increasing
spillway capacity to handle higher floods,
extending reservoir storage and improving
sediment flushing techniques. W hile new
supply options may be needed in many
countries, restoring or extending the life of
existing dams and, where feasible, expand-
ing and improving services from existing
dams provide major opportunities to address
development needs.
The first post-project
evaluation shou/d
provide 'lessons learnt'
for future decisions
about planning, design
and operations of the
dam.
The Report of the World Commission on Dams
227
Chapter 8
Restoring or extending
the iife of existing
dams and, where
feasible, expanding
and improving services
from existing dams
provide major
opportunities to
address development
needs.
T he W C D Knowledge Base identified three
general categories of improvement:
■ modernising and upgrading equipment and
controls, and rehabilitating or expanding
facilities associated with the dam;
■ optimising operation of existing reser-
voirs including daily and seasonal water
I evel s an d rel ease pattern s fo r si n gl e o r
multi-purpose uses such as flood manage-
ment and hydro generation. This can be
done for a single dam, or in co-ordina-
tion with other reservoirs, lakes or water
course diversions regulating river flow in
a basin; and
■ optimising the role of the dam within
the larger system it services. For example
optimising the use of surface and ground
water inputs in agriculture where water is
a limiting factor, or using load manage-
ment practices to optimise the co-
ordination of hydro generation with
other energy sources.
The potential for increasing benefits from a
particular dam, or group of dams, in a basin
depends on the specific circum-
stances. Opportunities in all
three areas noted above should
be considered. Depending on
the situation the potential may
be considerable.
Other measures have shown
potential to improve the per-
formance of existing dams and
the services they provide. For
example, experience is growing
with flushing and sluicing
practices during monsoon floods
to reduce sedimentation and restore live
storage in certain types of reservoirs. A ccel-
erating the pace of investment in secondary
and tertiary canal systems and drainage can
significantly improve the productivity of
surface irrigation systems attached to large
dams. Other non-structural tariff, institu-
tional and management practices can
improve the efficiency of the irrigation and
water supply services provided by existing
dams but will require sectoral initiatives
that may be beyond the mandate of a dam
operator.
Improving performance begins with assess-
ing each dam for potential gainsfrom
modernisation, renovation, expansion or
optimisation of operations. Other gains can
come from investment in necessary hydro-
logical monitoring equipment, computer
software, and the preparation of basin and
system-level optimisation plans.
T his must be explicitly linked with the
options assessment phases of planning,
clearly showing the scope for improvements
to existing dams. T he public should have
the opportunity to comment on a survey
assessing improvement opportunities for all
dams. This should be followed by more
detailed assessments of the specific dams
which have potential for significant
improvements.
3.3 0 utstanding social issues associated
with existing large dams are identified
and assessed; processes and mecha-
nisms are developed with affected
communities to remedy them.
In all its public consultations, dam-affected
communities told the Commission about
the ongoing problems, broken promises, and
human rights abuses associated with the
involuntary resettlement and environmental
i mpacts from dams. The WCD Knowledge
Base includes significant evidence of un-
compensated losses, non-fulfilment of
promised rehabilitation entitlements, and
non-compliance with contractual obliga-
tions and national and international laws
228
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
(see Strategic Priority 6 and C liapter 9).
W liile tlie C ommission is not in a position
to adjudicate on these issues, it has suggest-
ed ways to redress past and ongoing prob-
lems associated with existing dams.
Existing international laws have articulated
a legal premise for a right to remedy, or
reparations which is also reflected in the
national legislative frameworks of many
countries.^ Reparation is defined as actions
or processes that remedy, repair, make
amends or compensate for past fai I ures and
damages G i ven the nature of damages
resul ti ng from I oss of I and and a v\ay of I i fe,
redress coul d i ncl ude remedi es that:
■ recognise the breach of the original
obligation and its consequences;
■ acknowledge claims;
■ assess damages;
■ assign responsibility; and
■ devise and implement remedial activities
to repair the long-term and cumulative
impact of these failures.
Assessing claims and making reparations
The responsibility for initiating the process
of reparation rests with government. The
affected people may also file claims with the
government. In order to address reparation
issues, the government should appoint an
independent committee with the participa-
tion of legal experts, the dam owner, affect-
ed people and other stakeholders. The
committee should:
■ develop criteria for assessing meritorious
claims;
■ assess the situation and identify individu-
als, families and communities fulfilling
the criteria for meritorious claims and
■ enable joint negotiations involving
adversely affected people for developing
mutually agreed and legally enforceable
reparation provisions.
States are at different stages in
developing regulatory systems
and institutional capacity
including dispute resolution and
will take different approaches to
resolving this issue. H owever,
where there are reasons to take
action and alleviate hardships
experienced by the people
affected by dams constructed in
the past, there are two practical
ways of ad d ressi n g p ressi n g
problems.
■ Opportunities to restore, improve and
optimise benefits from existing large
dams and other river basin developments
should be used as an entry point to address
unmitigated social problems associated
with the dams in that river basin.
■ I n situations where no current develop-
ments are envisaged but outstanding
social problems related to dams exist,
meritorious claims for redress should be
prioritised and assessed on the following
basis:
■ affected people file genuine claims
related to economic, social and cultural
loses and unfulfilled promises;
■ the evidence accompanying claims
filed shows that they continue to
suffer harm due to unmitigated
impacts, and that the impact is
causally connected to the dam;
■ available mechanisms to resolve the
complaint have been exhausted; and
■ the nature and extent of the harm.
Enabling conditions
To exercise their right to seek a remedy
affected people need access to political and
legal systems and the means and ability to
participate in prescribed ways. A ffected
people should receive legal, professional and
financial support to participate in the
In order to address
reparation issues, the
government stiould
appoint an
independent
committee witl) the
participation of legal
experts, the dam
owner, affected people
and other
stakeholders.
The Report of the World Commission on Dams
229
Chapter 8
To exercise their rig lit
to see/c a remedy,
affected people need
access to political and
legal systems and the
means and ability to
participate in
prescribed ways.
assessment, negotiation and implementation
stages of tlie reparation process.
A ffected peoples must be defined according
to actual experience of impacts as described
in Strategic Priority 5.2, and not by the
limited definition in original
project documents and con-
tracts. Further, damage from
dams may require assessment on
a catchment basis extending
upstream and downstream.
Damage assessments should
include non-monetary losses.
Reparations should be based on
community identification and
prioritisation of needs, and
community participation in developing
compensatory and remedial strategies.
The nature of remedies
Remedies can include restitution, indemnity
(or compensation), and satisfaction. Restitu-
tion can include stopping the damaging
conduct or carrying out the original obliga-
tion. Indemnity involves the payment of
money for losses incurred, such as payments
to compensate for loss of assets, property
and livelihoods and a variety of remedial
actions, including resettlement plans and
development programmes. Satisfaction
includes other forms of reparation to address
any non-material damage, including public
acknowledgement of damage and an apology
Responsibility for reparations
Reparations may involve multiple actors
including states, financing institutions,
international organisations, and private
corporations. It is the State's responsibility
to protect its citizens, including their right
to just compensation. However, internation-
al organisations party to foreign investment
agreements also have obligations and
responsibilities to the rights and duties
specified in the U N 's declarations and
instruments. The World Bank group's
inspection panel and the International
Finance Corporation (IFC ) / M unilateral
I n vestment G uarantee A gency ( M I G A )
office of the C ompliance A dvisor / 0 mbuds-
man acknowledge the responsibilities of the
financier to comply with specific regulatory
and operational policies governing its
operations.
In a number of instances, efforts to assign
corporate responsibility for non-compliance
or transgressions related to social and
environmental elements of a project have
led to complaints filed in a corporation's
home country.
The roles and responsibilities of all parties
involved in planning, financing, building
and operating the dam must be clearly
established in the process of hearing and
assessing a claim by an independent com-
mittee constituted by the government in
consultation with the affected people and
other stakeholders.
Financing reparations and compensation
W hile financing reparations may pose
significant challenges thisshould not nullify
legitimate claims. Priority must be given to
financing a negotiated reparation plan
before funding new dam projects in a
specific location or river basin in a country
Reparations can be financed with funds
from national, provincial, and / or local
government budgets, a percentage of loans
and grants or a percentage on current
income from energy and water management
projects. Such funds could be allocated to a
trust fund to benefit the community over
the long term (see Strategic Priority 6 for
more information on trust funds). Through
changes in dam operations or other means,
reparations can take the form of allocations
230
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
of non-monetary resources, including land,
water, fish and access to sacred sites.
A n independent committee should be
empowered to collect, manage, and award
reparations. To ensure that decisions con-
form to the laws of the country and to
international laws, such committees should
include legal representatives selected by
government and affected communities.
Parties contributing to the fund should be
represented to ensure transparent use of
their funds. A ccountability of the parties
responsible for reparation should be ensured
through contracts and legal recourse.
3.4 The effectiveness of existing environ-
mental mitigation measures is assessed
and unanticipated impacts identified;
opportunities for mitigation, restora-
tion and enhancement are recognised,
identified and acted on.
T he impact of large dams upon natural
ecosystems and biodiversity is a major
concern. In the past few decades, some
countries have made considerable invest-
ments to alleviate these impacts. Wide-
spread concern remains that dams elsewhere
continue to result in significant, and even
unnecessary, negative impacts on a wide
range of natural ecosystems and on the
people that depend on them. These ecosys-
tems perform functions such as flood allevia-
tion and yield products such as wildlife,
fisheries and forest resources. T hey are also
of aesthetic and cultural importance for
many millionsof people.^
A range of measures i s aval I abl e to en hance
and restore eco^ems from thei r man-
modi fi ed state, and many are al ready i n use
vvorldwide. In n^ny cases these efforts are
motivated by emergent envi ronmental
constrai nts and changi ng community
pri ori ti es as i n the case of efforts to combat
i ncreasi ng sal i nity i n the
M urray Darl i ng Basi n i n
A ustral i a, or the new South
A f ri ca Water A ct wh i ch
real I ocates vvater ri ghts A t
I east fi ve countri es ( U n i ted
States J apan, A ustral i a, Brazi I ,
and France) are assessing the
effi ci ency of exi sti ng f i sh
passes and recommendi ng
i mprovements to desi gi and
operati on . T he desi gn of the M ohal e dam i n
Lesotho has been modified to al low larger
flov\Ei in anticipation of the results of the
envi ron mental fl ow studi es currenti y bei ng
completed.
M any dams i n the U nited States have al so
been modi fled to allow for I argerflov\E.
Countries such as South Africa, Senegal and
Cameroon have introduced artificial flood
rd eases to mai ntai n downstream fl oodpl ai ns
of value to local people. Thistechnique is
used on the Columbia River ^em in the
U nited States to reduce problems with total
dissolved gasesthat can kill valuable fish.
T here are a number of barri ers and con-
strai nts to overcome. C onti nuous monitor-
i ng i s a prerequi si te to i denti fy and assess
what the actual i mparts are and the possi bl e
effert of mitigation and restoration meas-
ures Resourcesfor implementing HDnitor-
i ng must be i ntegrated i n the pnoj ert cost.
C I ear gui del i nes on envi ron mental mon i tor-
i ng and a response to deal with i mparts are
needed. Other constrai nts will have to be
addressd, parti cul arl y for pri vatd y de/d -
oped hydropower projertsthat i nvolve long-
term supply contrarts negotiated on previ-
ous rd €BEe patterns C ontrarts for a speci -
fi ed ti me peri od may not anti ci pate or
al I ocate responsi bi I i ty for peri odi c changes
within thecontrart period, and would
requi re renegotiation.
Countries such as
South Africa, Senegal
and Cameroon have
introduced artificiai
fiood releases to
maintain downstream
fioodplains of value to
local people.
The Report of the World Commission on Dams
231
Chapter 8
3.5 All large dams have formalised operat-
ing agreements with time-bound
licence periods; where re-planning or
re-licensing processes indicate that
major physical changes to facilities or
decommissioning may be advanta-
geous, a full feasibility study and
environmental and social impact
assessment is undertaken.
M any dams, particularly irrigation and water
supply dams, do not have operating agree-
ments or licences. W here they do exist they
are time-bound agreements. T hey generally
set out the obligations of the public agency
or private entity operating the dam, and
provide a legal basis for stakeholders to
participate, in an open and transparent
manner, in important decisions regarding
physical changes in facilities or reservoir
operations.
multi-purpose dams with power compo-
nents. Licences for private owners are time-
bound and are reviewed at periods of 20 to
40 years, or more frequently depending on
the country's policy and regulations. There
are recent examples where public agencies
and private owners alike have had to apply
for licences for existing dams when new
regulations were introduced. Such licences
identify activities which the existing own-
ers, including the government, need to
comply with. They range from introducing
and reporting on monitoring programmes to
dam safety inspections. H armonisingthe
licence expiry dates for all dams in a partic-
ular river basin may have benefits in some
cases, for example a cascade sequence of
dams where interactive effects and cumula-
tive impacts are a consideration.
There is a trend
towards formal
licensing of new and
existing dams operated
by public and private
agencies.
Licences or operating agree-
ments provide requirements for
physical, environmental and
social impact monitoring,
contingency plans, operating
strategies, the specific require-
ments for publication of moni-
toring and operating results, and
requirements for the periodic
needs and performance review of existing
dams noted earlier. Given the ageing
population of dams, safety issues require
more attention in the form of inspections,
routine monitoring, evaluations, surveil-
lance systems, and regularly updated emer-
gency action plans. W here practical and
feasible, it is also important to update dams
to contemporary standards, especially
regarding spillway capacity and resistance to
earthquakes.
There is a trend towards formal licensing of
new and existing dams operated by public
and private agencies. This applies particular-
ly to single purpose hydropower dams and
W here re- licensing processes are in place,
decommissioning may be an option. This
option usually arises where a dam has
exceeded its useful life, where safety reasons
make it less expensive to remove the dam
than to rehabilitate it, or where the costs
(including environmental costs) of further
operation outweigh the benefits. Experience
with decommissioning is growing in North
A merica and Europe.^
T he effects of decomnisa on ing particularly
on the natural environment where eco^
tern restoration is a young science, have yet
to be determi ned. I n some cases envi ron-
mental restoration has been well served by
decommissioni ng i n others negative effects
have been observed. Decommissioni ng of
larger dams particularly those with a high
bui I d- up of sdi ments i n the resen/oi r may
be problematic, especially if the dam is to be
removed and the sedi ments released down-
stream. Removal of the dams may have
many consequences on land use in upstream
and downstream areas and on other socio-
232
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
economic values and should be subjected to
environmental, social, technical and eco-
nomic assessment in thesame way that new
dams are.
Based on the range of issues that may surface
with decommissioning, a feasibility study
should be carried out to select the overall
best solution, considering economic, envi-
ronmental, social and political factors.
The challenge in licensing isthat many
countries have insufficient legal frameworks
and there may be no consensus on the
appropriate level of regulation and licens-
ing. N ew institutional arrangements may be
necessary to formalise licensing operating
agreements in many countries. A t present
the institutional responsibility for different
aspects of the operating agreement may be
located in different institutions. A nother
barrier to overcome isthat some existing
dams may not have physical provisions to
accommodate all the changes in regulation
and meet all current standards.
The Report of the World Commission on Dams
233
Chapter 8
Strategic Priority 4
Sustaining Rivers and Livelihoods
Key Message
Rivers, watersheds and aquatic ecosystems are the biological engines of the planet. They are
the basis for life and the livelihoods of local communities. Dams transform landscapes and
create risks of irreversible impacts. Understanding, protecting and restoring ecosystems at
river basin level is essential to foster equitable human development and the welfare of all
species. Options assessment and decision-making around river development prioritises the
avoidance of impacts, followed by the minimisation and mitigation of harm to the health and
integrity of the river system. Avoiding impacts through good site selection and project
design is a priority. Releasing tailor-made environmental flows can help maintain downstream
ecosystems and the communities that depend on them.
Effective implementation of this strategic priority depends on applying these policy principles:
4.1 A basin-wide understanding of the
ecosystem's functions, vaiuesand require-
ments, and liow community iiveiilioods
depend on and influence tliem, is required
before decisions on development options
are made,
4.2 Decisions vaiue ecosystems, social and
lieaitli issues as an integral part of project
and river basin development and prioritise
avoidance of impacts in accordance with a
precautionary approach.
4.3 A national policy is developed for maintain-
ing selected rivers with high ecosystem
functions and values in their natural state.
When reviewing alternative locations for
damson undeveloped rivers, priority is given
to locations on tributaries.
4.4 Project options are selected that avoid
significant impacts on threatened and
endangered species. When impacts cannot
be avoided viable compensation measures
are put in place that will result in a net gain
for the species within the region.
4.5 Large dams provide for releasing environ-
mental flows to help maintain downstream
ecosystem integrity and community
livelihoods and are designed, modifled and
operated accordingly.
The 1992 Earth Summit
in Brazil established the
critical link for all
countries between a
healthy environment and
economic development,
refuting the idea that this
is only a luxury for rich
countries.
Rationale
Since the 1970s a growing understanding of
nature asthebasisfor long term human well
being has replaced the view that it is an array
of replaceable inputs to the development
process. The 1992 Earth Summit in Rio de
Janeiro, Brazil established the
critical link for all countries
between a healthy environment
and economic development,
refuting the idea that this is only a
luxury for rich countries. Subse-
quently 177 countries in the world
have accepted, approved, or
acceded to the Biodiversity
C onvention and 122 to the
Ramsar Convention on Wetlands.
Rivers and catchments
R ivers and catchments are particularly impor-
tant because even relatively small changes in
land-use, pollution or flows can have far-
reaching effects. T hese often extend thousands
of kilometres downstream to the deltas of
major rivers and even to the coastal and
marine environments. M ounting global
pressure on water resources, and the fragmen-
tation by dams of 60% of the world's rivers,
makes these ecosystems an urgent global
concern.^
Dams disrupt the existi ng pattern of vvater
use and real I ocate water to new uses W here
water i s abundant, or where few peopi e
depend on fi sh, fl oodpl ai ns or deltas for
234
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
their livelihoods, this process can often
proceed smoothly. W here water is scarce,
heavily used or supports economically or
socially important ecosystems, this redistri-
bution can lead to irreversible impacts,
losses, inequities and conflicts. Changes to
river flow, leaching of toxic elements from
the reservoir bottom, and the creation of
new habitats for disease vectors in slow
flowing irrigation and drainage canals can
all impact negatively on human and ecologi-
cal health.
Equitable water use
R iver water is a common resource that
should serve the good of all riverine inhabit-
ants and the environment in an equitable
and sustainable manner. Water reallocation
through dams should explicitly take account
of existing uses, and of the species and
ecosystems the water supports. M any of the
broader values that rivers provide are too
often ignored in project planning and
appraisal. The natural resources associated
with rivers directly support natural habitats
and the livelihoods and cultural values of
millionsof people worldwide. Rivers may
also hold deep spiritual meaning for commu-
nities and societies.
T he State must use effective mechanisms for
sharing the available water between users,
bearing in mind the balance between
different uses - irrigation, water supply,
power generation, and ecosystem - and the
livelihood and quality of life needs of
riverine communities.
T he construction and operation of many
large dams have had significant, and often
irreversible, effects on many rivers, riverine
ecosystems and communities. T hese activi-
ties threaten the sustainability of the
underlying ecological processes that main-
tain habitat and biodiversity. Countries that
have ratified the Convention on Biodiversi-
ty and the Ramsar Convention on Wetlands
can use the provisions and guidance of these
conventions to assist in meeting sustainabil-
ity objectives.
Weighing negative and positive impacts
Dams can reduce the risks of flooding.
However, especially in many developing
countries, reduced flooding may also in-
crease risks for local people by adversely
affecting downstream fisheries, grazing and
crop production. In all cases, negative
economic and social impacts must be
weighed equally against positive impacts.
In the past, dam construction has caused
environmental damage due to poor assess-
ments, vested interests, lack of knowledge,
lack of enforcement of mitigation measures,
lack of sufficient resources, lack of ongoing
monitoring or ignorance of ecosystem
functions. Research will contin-
ue to improve knowledge and
understanding of ecosystem
complexity. H owever it is
difficult to mitigate all ecosys-
tem impacts and ecosystem
responses are rarely fully pre-
dictable. A multi-layered
approach is needed that priori-
tises avoidance, especially in
sensitive areas, and has in-built
checks that adapt and respond to observed
ecosystem changes.
The policy principles presented here provide
a framework for the range of measures
needed to ensure protection and health of
ecosystems in planning, construction and
operation of dams and their alternatives. N o
single principle can be fully effective in
isolation from the others nor can a single
ministry or agency be responsible for them all.
Ecosystem issues are best addressed through a
The natural resources
associated with rivers
directly support natural
habitats and the
livelihoods and cultural
values of millions of
people worldwide.
The Report of the World Commission on Dams
235
Chapter 8
The flow of water links
riverine ecosystems,
establishing a continuum
from the top of the
catchment to the ocean.
Upstream water resource
developments cannot be
separated from their
downstream implications.
holistic view of the river, with all actors
incorporating an ecosystem approach into
their planning, operations and monitoring.
Elaboration of Policy Principles
4.1 A basin-wide understanding of the
ecosystem's functions, values and
requirements, and how community
livelihoods depend on and influence
them, is required before decisions on
development options are made.
The river basin isthe natural geographical
unit to assess impacts on ecosystems and
livelihoods.
Effective avoidance,
minimisation and mitiga-
tion of negative environ-
mental impacts from large
dams and their alternatives
require good baseline
information and scientific
knowledge of the riverine
ecosystem, gathered over
several years. The flow of
water links riverine ecosys-
tems, establishing a contin-
uum from the top of the catchment to the
ocean. U pstream water resource develop-
ments cannot be separated from their
downstream implications.
Considering the ecosystem
Therefore, project proponents must assess
the ecosystem consequences of the cumula-
tive impact of dams, dam induced develop-
ments and other options along the full
length of the river reaching as far as the
delta, even where this extends into neigh-
bouring provinces or countries. W here the
resources of riparian communities could be
negatively affected they should be consulted
on the proposal before decisions are made
(see Strategic Priorities 5 and 7).
4.2 Decisions value ecosystems, social
and health issues as an integral part
of project and river basin develop-
ment and prioritise avoidance of
impacts in accordance with a precau-
tionary approach.
Large dam projects have frequently incorpo-
rated environmental and social considera-
tionstoo late in project planning to allow
their full integration into project choice and
design. Environmental Impact A ssessments
(EIA) are often seen simply as an obstacle to
be overcome in getting clearance and
approval for the project. C onsultants and
agencies involved in planning should focus
on ecosystem, social and health issues at the
same time that economic and technical
studies for options assessment begin. Planning
teams should explicitly incorporate ecosystem,
health and social findings in the final choice
of project through multi-criteria analysis.
Strategic impact assessment during the
options assessment stage should include
independent and comprehensive assessment
of ecosystem, social and health impacts and
evaluation of any cumulative or inter-basin
impacts. A n independent panel could be
used to support impact assessment.
A Iternatives to large dams are frequently
available, and negative impacts of large dam
projects vary hugely due to site selection
and the design of elements such as its
height, intakes, outlets and gates. By delib-
erately setting out to avoid projects with the
most serious and damaging negative im-
pacts, project outcomes will prove more
sustainable and acceptable in future.
The precautionary approach
T he precautionary approach requires States
and water development proponents to
exercise caution when information is
uncertain, unreliable, or inadequate and
236
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
when the negative impacts of actions on the
environment, human livelihoods, or health
are potentially irreversible. It therefore
forms part of a structured approach to the
analysis of risks arising from water and other
development proposals. The precautionary
approach is also relevant to risk manage-
ment. Determining what is an acceptable
level of risk should be undertaken through a
collective political process. The process
should avoid unwarranted recourse to the
precautionary approach when this can
overly delay decision-making. H owever,
decision-makers faced with scientific uncer-
tainty and public concerns have a duty to find
answers as long as the risks and irreversibility
are considered unacceptable to society.
A precautionary approach therefore entails
improving the information base, performing
risk analysis, establishing precautionary
thresholds of unacceptable impacts and risk,
and not taking actions with severe or
irreversible impacts until adequate informa-
tion is available, or until the risk or irrevers-
ibility can be reduced, making outcomes
more predictable. N ormally the burden of
proof will be on the developer.
4.3 A national policy is developed for
maintaining selected rivers with high
ecosystem functions and values in
their natural state. When reviewing
alternative locations for dams on
undeveloped rivers, priority is given
to locations on tributaries.
States should have a policy that excludes
major intervention on selected rivers to
preserve a proportion of their aquatic and
riverine ecosystems in a natural state. T he
policy should be an integral part of the
overall national water policy.
A growing number of countries have re-
sponded to increasing development pressure
on rivers by setting aside certain reaches, or
entire rivers, from development. For exam-
ple, by 1998 the U nited States had design at
ed 154 rivers under the 'Wild and Scenic
Rivers A ct', covering 17 200 km of a total
5.6 million kilometres of rivers in the
country. Sweden has set aside four entire
rivers from hydropower development, and
N orway has 'protected' 35 % of its hydro-
power potential from development. Zimba-
bwe has passed similar legislation for river
specific protection orders. President Kim
Daejung of Korea cancelled a
dam on theTong River in June
2000 and declared the area
protected for its natural and
cultural values.
This approach helps to recon-
cile development of the
natural resource base with the need to
maintain genetic diversity as a potential
resource for human development in fields
like medicine. It also respects the intrinsic
value of rivers. To put this policy into
practice, the State, appropriate research
institutions, communities and NGOsmust
gather the essential baseline information to
inform the policy from a holistic national
perspective. G athering this information
allows the country to select the least envi-
ronmentally damaging options whenever
dams emerge as the best option in the
planning process. It enables the country to
combine river development with river
protection, achieving a balanced outcome
that satisfies the objective of sustainable
development at national and local levels.
Floodplain ecosystems and migratory fish are
frequently associated with the lower stretch-
es of the main-stems of rivers and their
deltas. T hey are often particularly important
resources for local people, especially in
Determining what is an
acceptable level of risk
should be undertaken
ttirough a collective
political process.
The Report of the World Commission on Dams
237
Chapter 8
The project authorities
wiii finance
compensation as an
integral part of project
costs for the life span of
the project.
developing countries. In many cases main-
stem dams have negatively affected the
already fragile livelihoods of downstream
riverine communities. Priority under the
policy should therefore be given to alterna-
tive sites on the tributaries where impacts
are likely to be less than on the main-stem.
4.4 Project options are selected that
avoid significant impacts on threat-
ened and endangered species. When
impacts cannot be avoided viable
compensation measures are put in
place that will result in a net gain for
the species within the region.
Too often, planned measures to mitigate
impacts on threatened or endangered
species have been inadequate. Failure is
typically due either to insufficient l<nowl-
edge and understanding of the ecosystems
concerned, inadequate plans,
or lack of institutional and
regulatory capacity to
enforce environmental
mitigating measures.
D am proponents have often
over-confidently assumed
that mitigation measures will
work, rather than making
them work. Responsibility for their imple-
mentation may be spread across many
actors. T his situation has contributed to a
significant increase in the rate of extinction
of species sharing our planet.
Respecting international guidelines to
reduce impacts
G overnments have often agreed interna-
tional guidelines on environmental issues,
yet the record of implementation is poor.
The existing international conventions
contain agreed legal provisions for biodiver-
sity protection and sustainable development
issues, including measures for conserving the
biodiversity of inland waters, assessing the
international importance of wetlands or
developing national wetland policies. M ost
States have ratified the U N C onvention on
Biological Diversity and the Ramsar Con-
vention on Wetlands and they should
urgently apply their guidelines. This will
help to avoid negative impacts on rare and
threatened species. States that have not yet
ratified the C onventions are encouraged to
do so, and in the meantime to respect their
provisions.
Compensation plans
W here significant impacts on threatened or
endangered species are considered unavoida-
ble, after exhausting other water and energy
options and other dam project options,
project authorities should put in place a
credible and monitored compensation plan.
T his should ensure that the population
status of the species within the region shows
a net gain that adequately compensates for
loss of habitat to the project. Such compen-
sation can include protecting other habitats,
restoring the species in other locations and
captive breeding programmes. The project
authorities will finance compensation as an
integral part of project costs for the life span
of the project. If monitoring indicates
compensation is not effective, then addi-
tional measures will be required.
4.5 Large dams provide for releasing
environmental flows to help maintain
downstream ecosystem integrity and
community livelihoods and are
designed, modified and operated
accordingly.
Dam owners have often viewed releasing
water from a dam for purposes other than
power generation or water supply as a waste
of a valuable resource. Some agencies have
declared it their aim to prevent a single drop
of water from reaching the sea. Yet twenty-
nine countries use environmental flow
releases (EFR) from dams to maintain a
238
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
sustainable balance between the purpose of
the dam and the needs of downstream
ecosystems and resource users. Eleven
countries are considering implementing
E F R s. ^° T h i s ref I acts the g'owi ng real i sati on
that v\ater and rivers support many complex
processes that nxist be mai ntai ned to
achi eve sustai nabi e devd opment. Dams
should now be specifical ly designed to
rd edee the necessary fl ow of good qual i ty
water. Targeti ng particular eco^em
outcomes i ncreasi n^ y resul ts i n f I ow rd eas-
es that go beyond the historical notion of a
'mi ni nxim rdease', often arbitrari ly fixed at
10% of mean annual flow. A minimum
rdease may serve to keep the river v\et but it
may not be an ecological I y effective meas-
ure.
W here downstream I i vd i hoods depend on
f I oodpl ai ns the rd ease may take the form of
a managed flood. Senegal, South Africa and
C ameroon al I operate dams to fl ood val ua-
bl e downstream f I oodpl ai ns that benef i t
rural communities These managed floods
mai ntai n hundreds of thousands of hectares
of g'azi ng I and and i mportant fi sheri es
Legal measures are often requi red to enable
implementation of environmental flows
0 ne exampi e i s the new South A f ri can
Water Act. This Act recognissthat the
ul ti mate ai m of water resource management
1 s to achi e/e sustai nabi I ity for the benefit of
al I users and that the protecti on of the
qual i ty and quanti ty of v\ater resources i s
necessary to ensure sustai na-
bi I ity of the nation's v\ater
resources T herefore the A ct
desigiatesa 'reservd that
nxBt be identified before any
authorisation of water
abstraction for other purpos-
es Thisbasic reservecon-
tai ns the mi n i nxim quanti ty
and qual i ty of water requi red
to satisfy basic human needs
protect aquatic ecosystems
and secure the sustai nabi e devd opment and
use of the water resource i n questi on. T he
A ct opens the way to estabi i shi ng the
envi ron mental flovjs requi red to mai ntai n
ecosystems
Local I y dri ven proceses to
estabi i sh the obj ecti ves of envi -
ronmental f I ows wi 1 1 1 ead to
i mproved and sustai nabi e out-
comes for rivers eco^emsand
the riveri ne comnxini ties that
depend on them. Eco^em
responds to dam operati ng
regi mes are vari abl e, so dam
owners should undertake regular
monitoringandafive yearl y
e/al uati on of envi ronmental
performance. This e/al uati on
should inform modification of
envi ronmental fl ows where necessary
Chapter 9).
Locally driven
processes to establish
the objectives of
environmental flows
will lead to Improved
and sustainable
outcomes for rivers,
ecosystems and the
riverine communities
that depend on them.
(see
The Report of the World Commission on Dams
239
Chapter 8
Strategic Priority 5
Recognising Entitlements and Sharing Benefits
Key Message
J oint negotiations with adversely affected people result in mutually agreed and legally
enforceable mitigation and development provisions. These provisions recognise entitlements
that improve livelihoods and quality of life, and affected people are beneficiaries of the
project. Successful mitigation, resettlement and development are fundamental commitments
and responsibilities of the State and the developer. They bear the onus to satisfy all affected
people that moving from their current context and resources will improve their livelihoods.
Accountability of responsible parties to agreed mitigation, resettlement and development
provisions is ensured through legal means, such as contracts, and through accessible legal
recourse at national and international level.
Effective implementation of this strategic priority depends on applying these policy principles:
5.1 Recognition of riglits and assessment of
risks is tlie basis for identification and
inciusion of adverseiy affected
stakelioiders in joint negotiations on
mitigation, resettiement and deveiopment
related decision-making.
5.2 Impact assessment includes aii people in
the reservoir, upstream, downstream and in
catchment areas whose properties,
livelihoods and non-material resources are
affected. It also includes those affected by
dam related infrastructure such as canals.
transmission lines and resettlement
developments.
5.3 All recognised adversely affected people
negotiate mutually agreed, formal and
legally enforceable mitigation, resettle-
ment and development entitlements.
5.4 Adversely affected people are recognised
as first among the beneficiaries of the
project. M utually agreed and legally
protected benefit sharing mechanisms are
negotiated to ensure implementation.
Recognition of riglits is
an important element
in establisliing the
existing entitlements of
adversely affected
people at various
locations.
Rationale
I n the past, dams have displaced people
from their habitats and livelihoods without
giving them any control over alternatives.
Besides those whose land and homes were
inundated, the adversely affected people
included natural resource dependent river-
ine communities living upstream and
downstream of the dam and in
other affected areas. Because
some groups were not recognised
as affected, the number of
adversely affected people has
been underestimated. Non-
recognition, or partial recogni-
tion, of the entitlements of
those identified as affected has
resulted in inadequate restitu-
tion for losses. Asa result dam projects have
often impoverished adversely affected
people.
A negotiated process to identify those
affected and develop legally enforceable
mitigation and development measures
depends on a number of enabling condi-
tions. A dversely affected people need to
show acceptance of the dam project by
consenting to the process and to the mitiga-
tion and development measures. These
measures should include a share in project
benefits and redress and recourse mecha-
nisms.
The policy principles in this strategic
priority relate closely to those in Strategic
Priority 1 and Strategic Priority 4 and should
240
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
be read in conjunction witli tiiose strategic
priorities.
Elaboration of Policy Principles
T lie impact assessment studies must identify
and delineate various categories of adversely
affected people in terms of the nature and
extent of their rights, losses and risks. Socio-
economic, demographic and health bench-
mark surveys of all adversely affected
populations must be completed and publicly
reviewed prior to drafting mitigation,
resettlement and development plans.
This process will facilitate assessment of the
actual magnitude, spread and complexity of
impacts and implications for people depend-
ent on riverine ecosystems. This signals a
departure from the way that social impacts
were assessed in the past and will empower
the planners and stakeholders to incorporate
the full extent of social impacts and losses in
the decision-making process. It will achieve
a holistic approach to social impacts arising
from dams and their infrastructure in river
basin contexts. Such an approach is applica-
ble to all options, dams and their alterna-
tives, and will create a level playing field in
the options assessment process.
5.3 All recognised adversely affected
people negotiate mutually agreed,
formal and legally enforceable mitiga-
tion, resettlement and development
entitlements.
I n order to enable all categories of affected
people identified in 5.2 to regain and
improve their livelihoods and welfare,
mitigation and resettlement measures should
be considered as a development opportunity
focusing on a number of fundamental inputs:
■ compensation for lost assets through
replacement, substitution, cash and
allowances;
■ livelihood restoration and enhancement
in the form of land-for-land options;
■ sustainable non-agricultural employment
and other measures;
5.1 Recognition of rights and assessment
of risks is the basis for identification
and inclusion of adversely affected
stakeholders in joint negotiations on
mitigation, resettlement and develop-
ment related decision-making.
Recognition of rightsisan important element
in establishing the existing entitlements of
adversely affected people at various locations
Existing entitlements are the basis for negoti-
ating new entitlements. The project process
recognises a range of entitlements including
the entitlement of affected parties to:
■ participate in negotiating the outcomes
of the options assessment process;
■ participate in negotiating the implemen-
tation of the preferred option and
■ negotiate the nature and components of
mitigation and development entitlements.
C omprehensive assessment of the nature
and extent of risks implied by a project
allows for accurate assessment of the socio-
economic conditions and the cultural context
of the potentially affected people. T he socio-
economic, cultural, political and health
impacts must be identified through a number
of assessment methods such as Social Impact
A ssessment (SIA ), Health Impact Assessment
(H lA ), impoverishment risk analysisand
cultural heritage impact assessment with
active participation of the affected people.
5.2 Impact Assessment includes all people
in the reservoir, upstream, downstream
and in catchment areas whose proper-
ties, livelihoods and non-material
resources are affected. It also includes
those affected by dam related infra-
structure such as canals, transmission
lines and resettlement developments.
The Report of the World Commission on Dams
241
Chapter 8
Regaining iost //Ve///iood
requires adequate lead
time and preparation and
ttierefore people must
be fully compensated
before relocation from
their land, house or
livelihood base.
m a share in project benefits and other
development measures; and
■ access to primary services such as school-
ing and health care.
For compensation to create effective new
entitlements, customary and legal rights,
and the future value of land and common
property resources must all be acknowl-
edged. To reach agreement and prevent
future disputes, a transparent and legally
enforceable mechanism must exist to
calculate the replacement
value of all affected assets. To
check against under-valuation
of assets, the date for calculat-
ing the value of assets must
match the date of payment.
In the past, cash compensation
has proved ineffective in re-
creating lost assets and oppor-
tunities in less monetised
economies and should be avoided. W here
people prefer cash compensation, it must be
paid with adequate safeguards that enhance
long term livelihood sustainability Regain-
ing lost livelihood requires adequate lead
time and preparation and therefore people
must be fully compensated before relocation
from their land, house or livelihood base. If
compensation payment is delayed, interest
on the compensation amount must be paid
to account for inflation
Agreeing on mitigation, resettlement and
development
M utually agreed mitigation, resettlement
and development provisions should be
prepared jointly with the participation of all
affected people, government and the devel-
oper. Sustainable mitigation, resettlement
and development provisions and opportuni-
ties include:
■ resettlement with land-for-land, sustain-
able non-agricultural employment and /
or other development provisions;
■ resettlement as a community or viable
social unit;
■ resettlement close to the original habitat
for effective community recovery;
■ protection against land alienation to
secure negotiated entitlements; and
■ other livelihood support measures
including: agricultural support; access to
forests, grazing lands and other common
resources; access to livelihood resources
for all adult members including women;
and livelihood resources with the poten-
tial to sustain future generations.
Implementing a mitigation, resettlement
and development plan
Stakeholders must set up a high level multi-
stakeholder committee representing govern-
ment, the developer and affected communi-
ties. The committee will be responsible for
directing implementation of the mitigation,
resettlement and development programme
and will serve as an appeals forum to hear
complaints and resolve disputes. A M itiga-
tion. Resettlement and Development
Action Plan (MR DAP) accepted by the
affected people should be formalised
through two legally binding contractual
agreements.
■ a master contract that outlines the
obligations of government and the
developer to carry out the actions set out
in the M RDA P in time and to thefull
extent. The master contract will also
specify penalties, incentives and reme-
dies to facilitate compliance by govern-
ment and the developer. The financial
and other resources to fully comply with
the M R DA P have to be secured prior to
signing the master contract.
242
Dams and Development: A New Framework for Decision-Making
■ performance contracts jointly signed by
government and tlie developer with
individual families and the community
specifying entitlements (compensation,
resettlement where necessary and direct
benefits from the project), delivery
schedule, and recourse procedures.
In order to guarantee implementation, a
performance bond should be considered as
part of the master contract in the case of
private sector developers. See Policy Princi-
ple 6.2 under Strategic Priority 6 for a
discussion of performance bonds.
W hile the high level multi-stakeholder
committee will carry out preliminary dispute
resolution and grievance redress functions,
the master and performance contracts are
meant to empower communities and fami-
lies to seek redress from courts within the
country as a final resort.
T he contracts signed before construction
starts remain in effect through the operation
phase. Signing of master and performance
contracts, and demonstration by govern-
ment and the developer of their capacity to
fulfil their respective commitments signifies
consent by the affected people to move the
project from the design stage to the con-
struction stage.
5.4 Adversely affected people are
recognised as first among the benefi-
ciaries of the project. M utually
agreed and legally protected benefit
sharing mechanisms are negotiated
to ensure implementation.
People adversely affected by a dam project
should be the first to benefit from the
project. A ppropriate mechanisms should be
introduced to ensure equitable distribution
of development opportunities generated by
the dam.
The benefits could be related to
project finance, reservoir construction,
operation, downstream release and
revenue sharing. The benefits under
each category are elaborated in the
Guideline 20 in Chapter 9. Examples of
opportunities include preferential fishing
rights on reservoirs, land in the irrigation
command area, rights to draw down
lands, equity shares, rural electrification
from power generated, ownership of
tourist facilities, custodian-ship over
wildlife and other natural resources"
The adversl y affected peopi e ^oul d
participate in the identification, elec-
tion, distribution and delivery of bene-
fits. T he adversely affected people,
government and the developer/ finan-
cier should assess and agree on the level
of benefits. Asa general principle, the
level of benefits should be sufficient to
induce demonstrable improvements in the
standard of living of the affected people.
A II categories of affected people - displaced
and those located upstream, surrounding the
area of the reservoir, downstream of the dam
and host communities for resettlement should
be considered eligible in principle. They could
benefit in varying degrees, or they could
benefit equally depending on the extent of
risk the dam poses to their livelihoods.
Benefits could be the in the form of communi-
ty assets or services; and could be individual
and household focused. 0 nee the stakeholders
have agreed on the type and level of benefits,
they need to decide on delivery mechanisms
and timing. Commitments on benefits from
the project should form part of the perform-
ance contracts with affected families and the
community
The Report of the World Commission on Dams
Chapter 8
Strategic Priority 6
Ensuring Compliance
Key Message
Ensuring public trust and confidence requires that governments, developers, regulators and
operators meet all commitments made for the planning, implementation and operation of
dams. Compliance with applicable regulations, criteria and guidelines, and project-specific
negotiated agreements is secured at all critical stages in project planning and implementa-
tion. A set of mutually reinforcing incentives and mechanisms is required for social, environ-
mental and technical measures. These should involve an appropriate mix of regulatory and
non-regulatory measures, incorporating incentives and sanctions. Regulatory and compli-
ance frameworks use incentives and sanctions to ensure effectiveness where flexibility is
needed to accommodate changing circumstances.
Effective implementation of this strategic priority depends on applying these policy principles:
6.1 A clear, consistent and common set of
criteria and guidelines to ensure compli-
ance is adopted by sponsoring, contract-
ing and financing institutions and
compliance is subject to independent and
transparent review.
6.2 A Compliance Plan is prepared for each
project prior to commencement, spelling
out how compliance will be achieved with
relevant criteria and guidelines and
specifying binding arrangements for
project-specific technical, social and
environmental commitments.
6.3 Costs for establishing compliance
mechanisms and related institutional
capacity, and their effective application,
are built into the project budget.
6.4 Corrupt practices are avoided through
enforcement of legislation, voluntary
integrity pacts, debarment and other
Instruments.
6.5 Incentives that reward project proponents
for abiding by criteria and guidelines are
developed by public and private financial
institutions.
Rationale
Governments and other
stakeholders need to be
satisfied that once
informed decisions are
made, ali parties wili
ensure that they monitor
and comply with
obligations throughout
the life of a project.
G overnments and other stakeholders need
to be satisfied that once informed decisions
are made, all parties will ensure that they
monitor and comply with
obligations throughout the life
of a project. W hile there are
good examples of the develop-
ment of innovative compliance
guidelines, the WCD Knowl-
edge Base demonstrates failure
on the part of developers and
others to fulfil all voluntary and
mandatory obligations for the
assessment and implementation
of approved projects. A s noted
in the Global Review, the failure to comply
with obligations has led to impoverishment
of affected peoples, under-performance and
environmental degradation resulting in
legitimate criticism and a serious breakdown
in stakeholder trust and confidence in the
process, implementation, and outcomes of
decision-making.
M any States and international financing
institutions have comprehensive policies,
criteria and guidelines for implementing a
dam project once the decision to build is
taken. In the case of technical requirements,
the contracting process clearly lays out the
responsibilities, tasks, monitoring tools,
indicators, rewards and penalties associated
with contract implementation. Contracts
typically provide for a penalty or bonus for
late or timely completion and the posting of
244
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
a performance bond by the general contrac-
tor for the site.
Resettlement, environmental mitigation
and compensation are rarely, if ever, subject
to such rigorous design processes and
contractual terms. Often, these activities are
carried out by government ministries or
agencies and are not covered by contractual
obligations. W here they exist, contracts for
social and environmental programmes are
oriented towards task completion, without
any rewards or penalties related to compli-
ance with relevant criteria and guidelines.
W here resettlement numbers are underesti-
mated, there may be no clarity on which
agency or firm - aside from government - is
responsible. W hen funds are not available for
programme completion, or there is a lack of
accountability failure to resolve outstanding
settlement cases has led to long-standing
problems with displaced groups.
Trust and confidence in the capacity and
commitment to meet obligations must be
restored if new projects are to create more
positive development outcomes and avoid the
level of conflict that has occurred in the past.
This requires the formation of new relation-
ships and new and more effective means of
ensuring compliance.
Elaboration of Policy Principles
6.1. A clear, consistent and common set of
criteria and guidelines to ensure
compliance is adopted by sponsoring,
contracting and financing institutions
and compliance is subject to independ-
ent and transparent review.
A II project participants, including govern-
ment agencies, multilateral, bilateral and
commercial financing institutions, private
sector developers and N G 0 s should adopt a
clear set of criteria and guidelines for
developing water and energy
resources. This will provide a
framework for assessing compli-
ance internally and externally
and demonstrating compliance
in a transparent manner to
stakeholders.
There are already many excellent
sets of criteria and guidelines for
planning, project assessment,
project construction and opera-
tions. T he W C D C riteria and
Guidelines elaborated in Chap-
ter 9 are not intended to be exhaustive.
Rather they provide a set of conditions that
must be fulfilled to restore the level of trust
and confidence in the project process.
The first step is to ensure that each particu-
lar project participant makes a binding
commitment to the criteria and guidelines
that apply to them. Thisshould include
government agencies, bilateral and multilat-
eral financing institutions, private sector
developers and NGOs. In the case of
government agencies, this may involve
incorporating particular criteria into the
regulatory frameworks, operational procedures
and staff guidelines. For private sector devel-
opers this may involve obtaining certification,
adopting internal practices and procedures,
establishing codes of conduct or entering into
integrity pacts, to ensure compliance with best
social and environmental practice.
Ideally, participants should not only accept
the W C D recommendations, but also
harmonise their criteria and guidelines with
those of other bodies. N ot every detail needs
to be the same, but all project participants
should use common parameters. For exam-
ple, different international financing agen-
cies or national and provincial authorities
can harmonise their criteria and guidelines.
All project participants,
Including government
agencies, multilateral,
bilateral and commercial
financing Institutions,
private sector
developers and NGOs
should adopt a clear set
of criteria and guidelines
for developing water and
energy resources.
The Report of the World Commission on Dams
245
Chapter 8
By harmonising the criteria they employ for
social and environmental management,
multi-lateral and bilateral financiers, includ-
ing Export C redit A gencies, will prevent
developers from turning to financiers with
weak guidelines to fund unacceptable
projects. Project participants will reduce
needless duplication of effort by employing a
standard set of guidelines and tools such as
strategic impact assessment and environmen-
tal impact assessment to bring projects to
decision points in a more timely and less costly
manner.
Ensuring compliance with criteria and
guidelines
Project participants, in particular govern-
ment and developers will have to show that
they have lived up to their commitments in
order to restore trust and confidence in the
process. A n external review process involv-
ing an Independent Review Panel could be
the best way to achieve this (see G uideline
22 in C hapter 9). A dvancing the use of such
panels will require:
■ establishing an accredited list of experts
through a multi-stakeholder advisory
group;
■ giving such panels the power to invoke
the 'stop lights' that the C ompliance
Plan will establish; and
■ ensuring information from the independ-
ent panel is available to the public.
A nother mechanism that can be used either
with, or separate from, an Independent
Review Panel is independent certification.
To obtain certification, participants must
show they conform with international
standards for practices and procedures
through regular monitoring and review by
an accredited external body.
This has a number of potential practical
manifestations in the case of dams. T hese
include the development of a stewardship
council on dams or the development of an
International 0 rganisation for Standardiza-
tion (ISO ) standard for dam management .
In recent years the Forestry Stewardship
Council (FSC) has made rapid progress on
certification in the forest products industry
The FSC has the capacity to influence
behaviour through the certification of an
internationally traded product.
A dvancing the systematic management of
dams-related impacts through existing
recognised international standards, such as
thelSO, has the distinct advantage of
tapping into an existing and long-standing
international structure and network. The
C ommi sa on encourages i ndustry, and
parti cul arly dam operators to adopt I SO
14001 vvithi n a broader compi i ance frame-
work that i ncl udes performance bonds
i ntegrity pacts and other tools'^ I SO-basd
standards such as the I SO 9000 and 14000
seri es coul d be suppi emented by a sector
specific technical specification document for
dams incorporating the C ommi si on's final
recommendati ons and gui del i nes
T his would requi re agreement and effort on
the part of i ndustry multi lateral banl<s>
NGOsand affected peoples g'oups together
with wi 1 1 i ngiess on the part of the I SO to
devd op the speci f i cati on ( see recommenda-
ti on i n C hapter 10) . T he de/d opment of an
international certification ^em based on
the C ommi sa on's report cannot repi ace the
i ntegrati on of i ts gui dd i nes i nto nati onal
regulatoryframewDrks by governments It
should be seen as a complementary ap-
proach, not as an alternative. It would
encourage the private sector to promote and
adapt standard vol untary codes of conduct
i ncreasi n^y requi red i n today's competitive
markets
246
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
6.2. A Compliance Plan is prepared for
each project prior to commencement,
spelling out how compliance will be
achieved with relevant criteria and
guidelines and specifying binding
arrangements for project-specific
technical, social and environmental
commitments.
D ifferent States are at different stages in
developing regulatory systems and institu-
tional capacity and their systems will evolve
to reflect their particular circumstances. The
nature of existing systems will influence the
range of compliance measures available.
H ow these measures interrelate to achieve a
satisfactory compliance package will need to
be determined on a case by case basis.
A n overarching C ompliance Plan is the best
way to ensure that compliance activities and
measures are effectively pursued and imple-
mented, and should be developed for each
project. This plan will set out how the
developer will ensure compliance with
project related obligations. It may refer to
regulatory and non-regulatory processes and
obligations. W here the plan relies upon the
State's institutional capacity to ensure
compliance, the developer may have to
enhance this institutional capacity before
the project proceeds. T he measures taken
need to create trust and confidence that the
C ompliance Plan can and will be met.
In considering the range of tools and mech-
anisms available to ensure compliance,
greater use should be made of existing
conditionsdirectly linked to achieving
ongoing compliance. T hese conditions need
to be built in at key stagesof the project
cycle to provide maximum incentive to
comply. In States with well-developed
regulatory systems and institutional arrange-
ments (including judicial processes), greater
reliance can be placed upon direct regula-
tion. Where regulatory systems and support-
ing institutions are still evolving, the role of
financiers, insurers and contractors, and the
availability of a broad range of non-regulato-
ry measures will be of particular importance
in assisting States to proceed with accepta-
ble developments.
Binding arrangements must be in place for
social and environmental measures. The
agreed terms of resettlement and environ-
mental management conditions need to be
incorporated into legally binding and
publicly available documents, and into any
relevant statutory approvals issued by the
State.
Two mechanisms, used with
significant success in other fields,
can be applied to dam related
projects to ensure fulfilment of
commitments. They are:
Performance bonds, backed by
financial assurances, to provide
financial security that obligations
will be met (such as guaranteeing
the fulfilment of performance
contracts to fulfil social and environmental
commitments), and
Trust funds to hold and manage funds set
aside for a particular purpose (such as
resettlement or environmental measures).
Both of these measures can provide States
and stakeholders with a means of achieving
a new level of trust and confidence in
compliance, particularly in relation to:
■ the need to ensure that the full costs of
resettlement and environmental per-
An overarching
Compliance Pian is the
best way to ensure that
compiiance activities
and measures are
effectively pursued and
implemented, and
should be developed
for each project.
The Report of the World Commission on Dams
247
Chapter 8
Social and
environmental
performance bonds,
supported by adequate
financial assurances to
cover identified
resettlement costs and
environmental
measures should be
posted before project
work starts.
formance, including monitoring and
auditing, are met;
■ tlie need to secure sufficient financial
security up front to protect the State and
the community from the risk of default;
and
■ the importance of providing a financial
incentive to the contractor to complete
environmental and rehabilitation works.
Social and environmental performance
bonds, supported by adequate financial
assurances to cover identified resettlement
costs and environmental measures should be
posted before project work starts. Such
performance bonds are already used for the
technical components of dam
projects. 0 ther types of projects
carrying high environmental
risk have also used them
successfully.
I n cases where performance
bonds are not appropriate, such
as those where the State is the
developer, trust funds should be
used to achieve the same
objective. Trust funds are
widely employed to ensure that
funds are used for a designated
purpose. T hey can be employed to hold
funds for dam related resettlement and
environmental measures and for monitoring
and auditing costs through the life of the
project. T he trust fund deed needs to be
publicly available and the trustees need to
be independent from the project sponsors.
Trust funds can be effectively used either
alone or in conjunction with performance
bonds to secure financing for ongoing
monitoring and auditing obligations
throughout the life of the project. These
mechanisms also provide an effective means
for holding and distributing royalties to fund
ongoing initiatives.
A s with the granting of operating licences,
all contingencies cannot be anticipated. A
balance must be struck on a case by case
basis between providing the necessary level
of certainty to stakeholders that commit-
ments will be met, and sufficient flexibility
to accommodate open and transparent
adaptive management.
6.3. Costs for establishing compliance
mechanisms and related institutional
capacity, and their effective applica-
tion, are built into the project budget.
A rrangements need to be put into place to
ensure that the costs of implementing the
C ompliance Plan are built into the project
budget. W here projects are developed by the
private sector the State and affected people
should be satisfied that these costs are fully
financed and that appropriate arrangements
are in place to link compliance to key stages
in the project cycle.
W hen additional institutional capacity is
required, the costs should be explicitly
included under funding for compliance
activities. C ompliance activities represent a
transaction cost associated with the project
and should be treated as such. Competing
options may impose differing compliance
burdens on society This should be reflected
in analysing the acceptability of these
options. Past experience shows that there is
an inherent risk of failure in both the
satisfactory completion of the task and the
effort to ensure and enforce compliance.
Because of the high cost of compliance and
the risk of failure, a project's ability to
deliver on the Compliance Plan must be
explicitly addressed in the multi-criteria
analysis to assess options.
248
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
6.4 Corrupt practices are avoided
through enforcement of legislation,
voluntary integrity pacts, debarment
and other instruments.
A II States need to adopt and implement
common and consistent anti-corruption
legislation. C hapter 6 outlines progress
made on this front, particularly through the
ratification of the 0 EC D C onvention on
Combating Bribery of Foreign Public
Officials in International Business Transac-
tions.
Implementation, monitoring and enforce-
ment of such agreements will depend on the
resources dedicated to such efforts and
existing business practice. Integrity Pacts
can be employed as a project-specific
mechanism to complement national legisla-
tion. T hese pacts have the advantage of not
requiring explicit legislation and can be
used without waiting for lengthy legislative
processes where laws do not exist.
A n I ntegrity Pact is a voluntary undertaking
that sets the contractual rights and obliga-
tions of all the parties to a procurement
contract. T his eliminates uncertainties
about the quality, applicability and enforce-
ment of laws in a specific country. Integrity
Pacts can create greater trust and confidence
in the decision-making process, a more
hospitable investment climate and public
support for government procurement and
licensing programs.
The Integrity Pact has two principal goals,
namely to enable:
■ companies to abstain from bribery by
providing assurances that competitors
will also abstain from bribery and that
government procurement agencies will
follow transparent procedures and
prevent corruption, including extortion
by their officials; and
■ the State to reduce the high costs and
distortion of public procurement proce-
dures caused by corruption.
6.5 Incentives that reward project propo-
nents for abiding by criteria and
guidelines are developed by public
and private financial institutions.
Compliance with norms, regulations and
practices often becomes widespread when the
cost of compliance falls below the
costof non-compliance. Enforcing
regulations and agreements is one
way to support this process.
The level of risk and thetransac
tion costs of constructing dams
have risen steadily due to the
conflict over dams. This gives
project developers a financial incentive to
comply with the C ommission's recommen-
dations in order to reduce conflict, leading
to an improvement in market access,
financing terms and profitability.
A project followingtheWCD Criteria and
Guidelines is likely to be:
■ an economically, socially and environ-
mentally sound project; and
■ a project that has achieved public
acceptance through an inclusive partici-
patory process of needs and options
assessment.
This will clearly entail additional up-front
costs but this investment will bear fruit later
in terms of reduced risk and increased
benefits.
The importance of public recognition
should not be underestimated. Compliance
Compliance activities
represent a transaction
cost associated witf) the
project and sliould be
treated as such.
The Report of the World Commission on Dams
249
Chapter 8
incentives could include awards,
prizes, and other forms of public
recognition in the dams commu-
nity, introducing healthy compe-
tition to do better. Sanctions
should include public exposure
and debarment, either temporary
or permanent, from participation
in tenders and contracts.
Private sector financial service
providers and international
financial institutions (IFIs) must
work together to ensure that
projects and companies that
comply with the W C D C riteria
and G uidelines have access to
one or more of the following incentives:
■ enhanced access to private equity
capital;
■ better terms on debt finance (loans) and
insurance products;
■ lower rates on bond financing;
■ improved accounting for environmental
assets and liabilities;
■ preferential and expanded access to debt
financing from IFIs and their private
sector windows;
■ risk guarantees from I Fl s; and
■ interim credit mechanisms to assist
pipeline projects to implement W C D
recommendations.
Compliance incentives
could include awards,
prizes, and other forms
of public recognition in
the dams community,
introducing healthy
competition to do better
In the case of IFIs many of
the policies, procedures and
instruments are already being
developed. In the case of
private sector instruments
there is a continued need for
innovation in order to
convert adherence to criteria
and guidelines into tangible
benefits for the socially and environmental-
ly responsible investor. A few examples of
promising mechanisms to encourage inves-
tors to comply with criteria and guidelines
are listed below:
■ Socially Responsible Investing
The current growth in socially responsible
investing (SRI) in both U nited States and
European M arkets far outstrips the growth of
'traditional' investment funds and provides a
window of opportunity for financing
projects that emerge from proper options
assessment.
■ Lower Cap on Insurance Liability
Premiums in the insurance industry are
partly based on the extent of a project's
liability. A lower cap on liability for dam
projects certified as complying with the
WCD Criteria and Guidelines could be
arranged particularly where legally binding
arrangements that reduce the risk of non-
compliance are in place.
■ Bond Rating Systems
Bonds are increasingly used at the sovereign
and corporate level for infrastructure
projects. A rating system similar to the
Standard & Poor credit-worthiness rating
that reflects compliance could favour WCD
compliant bonds.
■ Accounting for Environmental Costs
and Liabilities
Projects that adopt the W C D C riteria and
G uidelines will present a more transparent
picture of the environmental costs and
liabilities of projects and companies. This
will lower their market risk and reduce
volatility brought about by stakeholder
activism in this area.
250
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
Strategic Priority 7
Sharing Rivers for Peace, Development and Security
Key Message
Storage and diversion of water on transboundary rivers" has been a source of considerable
tension between countries and within countries. As specific interventions for diverting water,
dams require constructive co-operation. Consequently, the use and management of re-
sources increasingly becomes the subject of agreement between States to promote mutual
self-interest for regional co-operation and peaceful collaboration. This leads to a shift in focus
from the narrow approach of allocating a finite resource to the sharing of rivers and their
associated benefits in which States are innovative in defining the scope of issues for discus-
sion. External financing agencies support the principles of good faith negotiations between
riparian States.
Effective implementation of this strategic priority depends on applying these policy principles:
7.1 N ational water policies make specific
provision for basin agreements in shared river
basins. Agreements are negotiated on the
basis of good faith among riparian States".
They are based on principles of equitable and
reasonable utilisation, no significant harm,
prior information and the Commission's
strategic priorities.
7.2 Riparian States go beyond looking at water as
a finite commodity to be divided and
embrace an approach that equitably allocates
not the water, but the benefits that can be
derived from It. Where appropriate, negotia-
tions Include benefits outside the river basin
and other sectors of mutual Interest.
7.3 Dams on shared rivers are not built In cases
where riparian States raise an objection that Is
upheld byan Independent panel. Intractable
disputes between countries are resolved
Rationale
C onfllct over transboundary rivers usually
results from a power imbalance amongst
riparians where one State or province is
sufficiently influential to exert its authority
over others G enerally upstream States are
considered to be in a more influential
position as they can control the water
source, but regional power imbalances may
also make it possible for downstream ripari-
ans to exert influence over upstream States
Similar conflicts may also occur within
States where rivers cross internal political
borders
through various means of dispute
resolution Including, In the last Instance,
the International Court of J ustlce.
7.4 For the development of projects on rivers
shared between political units within
countries, the necessary legislative
provision Is made at national and sub-
national levels to embody the Commis-
sion's strategic priorities of 'gaining public
acceptance', 'recognising entitlements'
and 'sustaining rivers and livelihoods'.
7.5 Where a government agency plans or
facilitates the construction of a dam on a
shared river In contravention of the
principle of good faith negotiations
between riparians, external financing
bodies withdraw their support for projects
and prcjgrammes promoted by that
agency
Such conflicts are often caused by proposalsto
store or divert water by constructing dams.
Experience suggests that disputes over water
can be resolved and co-operation developed,
even where disagreements in other spheres of
international relations remain unresolved.
There are 261 international river basins
worldwide. M ost do not have agreements
covering water allocation principles. Nego-
tiation of such agreements between riparian
States has proceeded on a case-by-case basis
without any overarching globally binding
legal instrument.
The Report of the World Commission on Dams
251
Chapter 8
Experience suggests
that disputes over
water can be resolved
and co-operation
developed, even
where disagreements
in other spheres of
international relations
remain unresolved.
The 1966 Helsinki Rules on the
U ses of W aters of I nternational
Rivers adopted the principle that
each State had 'a reasonable and
equitable share in the beneficial
uses of waters in an international
basin', but these rules have no
status in international law.
W hile the principles set forth in
the Helsinki Rules represent
what many experts contend are
long accepted principles, these R ules have
not achieved the level of a binding interna-
tional treaty. U ntil it enters into force, this
is also true of the U N C onvention on the
Law of the N on-N avigational U ses of
International Watercourses. Through a
resolution of the United N ationsG eneral
A ssembly in 1997, this C onvention attract-
ed support from 103 countries, but three
countries voted against it and 27 abstained.
T he C onvention took 27 years to develop
and has yet to be ratified by enough coun-
tries to bring it into force. A mongthe
opposing and abstaining countries are those
with major dam building programmes them-
selves or with an interest in restricting devel-
opment projects within other riparian States.
International efforts to develop a universal
framework for negotiations appear to have
had limited effect and some countries refuse
to respect what can generally be considered
as a growing body of international opinion.
The Commission views the principles of the
U N C onvention as an emerging body of
customary law and considers that States will
reduce the possibility of conflict if they are
prepared to endorse and adhere to them.
This contrasts with a situation where some
countries have followed a unilateral ap-
proach to the use of water resources and
reject the need for an integrated basin-wide
framework for water resources management.
I n the absence of effective international
agreements, other measures need to be
invoked. The ability of States to implement
dam projects on shared rivers is often related
to financial and technical support from
external agencies and the effectiveness of
public opinion in influencing public policy.
In this regard, countries fall into three broad
categories:
■ those with the financial and technical
resources to be totally independent;
■ those that require financial or technical
support for a significant proportion of
the project itself; and
■ those that may be capable of undertaking
the project independently, but rely on
external support for other projects and
programmes in the same sector.
I n addition to the application of legal
principles, external financing agencies have
influenced and can continue to influence
countries in the second and third categories.
I n the first category, active networking across
borders can inform public opinion and encour-
age moves towards a policy of co-operation.
Elaboration of Policy Principles
7.1 N ational water policies make specific
provision for basin agreements in
shared river basins. Agreements are
negotiated on the basis of good faith
among riparian States. They are based
on principles of equitable and reason-
able utilisation, no significant harm,
prior inforn)ation and the Commis-
sion's strategic priorities.
T he approach adopted by a national or sub-
national authority towards shared rivers may
have a direct and significant influence on
other water resource management strategies.
T he principles embodied in the 1997 U N
C onvention on the Law of the N on-
252
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
Navigational Uses of International Water-
courses warrant support. States should make
every effort to ratify the C onvention and
bring it into force. W here there are obsta-
cles to endorsing the Convention, the
following key principles it embodies can still
provide a framework for further dialogue
between riparian States:
■ 'equitable and reasonable utilisation' that
promotes the optimal sustainable use of
the river, taking into account the inter-
ests of other riparians;
■ 'no significant harm' to other riparians and
compensation or mitigation for any harm
caused; and
■ 'prior information' referring to the need to
inform other riparian States on planned
measures that may have a significant
effect on them.
The meaning of these terms is still evolving.
Particularly, the application of the principle
of 'no significant harm' will often conflict at
a basic level with many applications of the
principle of 'equitable and reasonable
utilisation'. These interactions have not
fully been resolved legally or customarily,
suggesting that in their application, these
principles should be read alongside the
C ommission's strategic priorities when
planning future water resources and hydro-
power developments.
T he C ommission's message is grounded on
the need to obtain the consent and co-
operation of riparian States in the manage-
ment of shared water resources including
both consumptive and non-consumptive
uses. In addition to having ratified interna-
tional agreements, individual States should
specifically address shared river basins in
their water policy or legislation, providing
clarity on their intention to co-operate in
water resources management. For example.
this intention is reflected in the South
African N ational Water A ct. Such provi
sions would provide a common basisfor
riparian States to move towards
more integrated management
agreements for shared watercours-
es. 0 n the basis of these agree-
ments, the affected States can
adopt a progressive approach to
institutional development,
starting with exchange of infor-
mation, joint scientific teams to
analyse data, and joint arrange-
ments for monitoring the imple-
mentation of agreements.
Success with a progressive approach like this
will provide the confidence to embark on
co-operation in other areas. Internationally
there is significant interest in transboundary
issues and external financing agencies have
expressed interest in supporting riparian
States that agree on a common approach.
Such financing should be provided within a
broad framework of co-operation, rather
than as a specific project- related compo-
nent.
7.2 Riparian States go beyond looking at
water as a finite commodity to be
divided and embrace an approach that
equitably allocates not the water, but
the benefits that can be derived from
it. Where appropriate, negotiations
include benefits outside the river basin
and other aspects of mutual interest.
Innovative solutions are needed to solve
apparently intractable problems. Often,
negotiations over shared rivers have devel-
oped into disputes over allocating what may
appear as an insufficient resource. A more
equitable and sustainable resolution may be
possible by shifting from a primary focus on
the allocation of the water resource, to a
focus on the benefits that derive from the
The Commission's
message is grounded
on the need to obtain
the consent and co-
operation of riparian
States in the
management of shared
water resources.
The Report of the World Commission on Dams
253
Chapter 8
A more equitable and
sustainable resolution
may be possible by
shifting from a primary
focus on the allocation of
the water resource, to a
focus on the benefits that
derive from the use of
the water
use of the water, encompassing considera-
tion of wider development objectives and
the options available to meet them. This
shift provides an opportunity to look more
constructively at alternative programmes for
meeting development objectives.
It is possible to expand the horizon of
negotiations further to include other issues
that optimise the comparative advantages of
two or more States. Such synergies may
result from differences in location, climate
or resource endowment. To some extent, the
Helsinki Rules began this shift.
In the wider negotiation arena,
the principles of sharing
benefits can include an array of
other resources, including co-
operation in other sectors, or
financial payments.
A n approach centred on wider
development objectives creates
a link between discussions at
transboundary level and
strategic planning processes
within countries that can be used to define
needs more clearly and map out a wider
range of alternatives. Early engagement can
avoid disputes becoming polarised around a
specific project proposal and entrenching
negotiating positions.
7.3 Dams on shared rivers are not built in
cases where riparian States raise an
objection that is upheld by an inde-
pendent panel. Intractable disputes
between countries are resolved through
various means of dispute resolution
including, in the last instance, the
International Court of J ustice.
Openness and information sharing is a key
first step in any transboundary water sharing
situation. From this can follow an independ-
ent and objective assessment of the conse-
quences and impacts of any proposed
intervention. Conducted in a manner
consistent with openness and information
sharing, a competent, independent entity
acceptable to all riparian States should
conduct strategic and project- related impact
assessment studies following the practice
outlined in C hapter 9.
T he level and intensity of impact assess-
ments will depend on the planning stage,
but in all cases should include environmen-
tal, social, health and cultural heritage
assessments. Safeguards are needed to ensure
independence in directing and financing the
assessment team. M echanisms such as
establishing a joint trust fund for imple-
menting the assessments should be consid-
ered. The impact assessments should be seen
as part of the joint institutional strengthen-
ing activities of riparian States to provide a
common, interactive approach and a sound
basis for political dialogue.
W here disputes cannot be resolved, an
independent panel should be established
that goes beyond the remit of the impact
assessment. The creation and operation of
such a panel is defined in the 1997 U N
C onvention on the Law of the N on-N aviga-
tional U ses of International Watercourses.
Good faith negotiations may of themselves
lead to mutually agreeable outcomes. I n the
event that disputes remain, and if parties do
not have recourse to dispute resolution
through international, regional or bilateral
agreements, the affected parties could refer
the matter to the I nternational C ourt of
Justice (ICJ), either by mutual agreement, or
directly if both parties have previously
submitted to the compulsory jurisdiction of
the ICJ by declaration under Article 36 of
the Statute of the Court.
These policy principles apply to all water-
courses including tributaries. T heir applica-
254
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
tion to tributary rivers is a location specific
issue dependent on tlie significance and
relationship of the tributary to the main
river and the interests of riparian States. In
cases where countries have already reached
basin level agreements for the main stem
river, such agreements should be extended
to significant tributary rivers taking into
consideration the C ommission's strategic
priorities. W here no agreements exist,
riparian States should adopt an integrated
approach looking at the management of the
main-stem and its tributaries within the
context of the entire river basin.
7.4 For the development of projects on
rivers shared between political units
within countries, the necessary legisla-
tive provision is made at national and
sub-national levels to embody the
Commission's strategic priorities of
'gaining public acceptance', 'recognis-
ing entitlements' and 'sustaining rivers
and livelihoods'.
The Commission's seven strategic priorities
are as relevant to rivers shared across sub-
national boundaries as they are to those
wholly within one province or those shared
between States. W here their legal system
provides for national-level control of water
issues. States should embody the principles
of shared waters in national water legislation
and develop a locally appropriate policy
framework for addressing such issues. I n
other cases. States at a federal level should
explore mechanisms to encourage good
practice and provide incentives for compli-
ance with the strategic priorities.
A Ithough many sub-national governments
have a mandate to manage water, a national
or federal government may exercise sanc-
tions through legislative and regulatory
mechanisms and provide financial incen-
tives. I n many cases dam development and
operation depend on project licences issued
by national and sub-national authorities, or
a mix of the two. D am projects may also be
subject to clearance from national and sub-
national environmental
agencies. Both licences and
environmental clearance can
be used to ensure that accept-
ed environmental and social
provisions are met. W here
federal funds are sought for
project assistance, they should
be made conditional on
compliance with the C ommis-
sion's strategic priorities. As part of their
overall responsibility. States should be more
pro-active earlier in the planning process to
facilitate resolution of disputes between
riparian provinces.
7.5 Where a government agency plans or
facilitates the construction of a dam on
a shared river in contravention of the
principle of good faith negotiations
between riparians, external financing
bodies withdraw their support for
projects and programmes promoted
by that agency.
The international community needs to take
a strong and concerted stand in the case of
shared rivers. W hile the decision to build a
dam is often considered a sovereign deci-
sion, the decision of external agencies to
support a dam depends on whether the
proposed project complies with that agency's
policies and guidelines. It is therefore of
concern that bilateral, multilateral and
export credit agencies have not yet harmo-
nised their policies towards shared water-
courses. These often-inconsistent policies
make it more difficult to improve the way
transboundary issues are handled. T he
complexity of the situation is increased by
the disparate and fluid nature of financial
support. This inconsistency often results in
situations where, although an external
agency may not be directly financing a dam
States should embody
the principles of shared
waters in national water
legislation and develop a
locally appropriate policy
framework for
addressing such issues.
The Report of the World Commission on Dams
255
Chapter 8
on a shared watercourse, its
support for other projects in
the same sector allows
national resources to be
allocated for this purpose.
It is essential that external
agencies harmonise their
policies towards shared
waters and deal with the
sector as a whole rather than
with specific projects. Such policies should
incorporate aspects of notification to
riparian States, the desirability of 'consent'
or 'no objection' from riparian States, and
independent expert assessment of social and
environmental impacts.
I n the absence of agreement among riparian
States, external agencies should make their
involvement conditional on the findings of an
independent commission as envisaged under
the 1997 U N C onvention on the Law of the
N on-N avigational U ses of I nternational
W atercourses or other appropriate mecha-
nisms agreeable to all parties. In cases where
States proceed with projects in the absence of
such a commission, or reject its findings, the
external financing agency should withdraw its
support from the sector concerned.
Endnotes
1 For example In many Latin A merlcan
countries (Argentina, Bolivia, Brazil, Chile,
C olombia and Ecuador) and in A ustralia,
Canada, India, N ew Zealand, and the
Philippines national laws recognise indige-
nous people's rights. Specific legislation on
indigenous people's rights includes the
Philippines Indigenous Peoples Rights A ct
(1997), Australian Aboriginal Land Rights
(N orthern Territory) Act 1976 and Chile's
Indigenous Law 1993. Recent Canadian
practice promotes the need for free, prior
informed consent of indigenous and tribal
peoples to projects in certain contexts.
Goldzimer, 2000, soc013, WCD submission;
H art, pers. comm. 2000; IDS, 2000.
2 See endnote 1
3 Colchester, 1993, 1995; Tenant, 1994; Gray
1995; Kingsbury 1995; Fisher, 1993; May-
bury-Lewis, 1996; Daes, 1996a, p72; Pritch-
ard, 1998a, p44; Pritchard, 1998b, p61. Some
Asian and African countries already accept
that the term 'indigenous peoples' applies to
the 'tribal peoples' and 'cultural minorities'
within their borders, including Cambodia,
Botswana, N epal and Philippines. In a
landmark case for the Ainu ofjapan, on 28
M arch 1997 a local court in Sapporo,
H okkaido, recognised the A inu as an
indigenous and minority people. The A sian
Development Bank has also adopted a policy
on 'indigenous peoples' to guide its opera-
tions. For a more nuanced discussion of the
applicability of the concept of indigenous
peoples to A sia, see Kingsbury 1998.
4 Daesl996b; World Bank, 1991.
5 N epal: M odifiying the intake, installing an
extra desander, dredging the forebay and
refurbishing the generators/turbines and
power house control systems at theTrushuli-
Devighat hydropower station in 1995
(originally built in the 1970's) improved
average annual power generation by 46%.
NBA 1997.
Lao PDR: Nam N gum isa 150 M W hydro-
power plant near Vientiane, the capital of
Lao PDR. Surplus power isexported to
Thailand and the power sales agreement
between the two countries is revised every 4
years. Based on updated hydrology and other
variables, studies were undertaken to
optimise the monthly and day-to-day
operation of reservoirs and turbines. A ssum-
256
Dams and Development: A New Framework for Decision-Making
Strategic Priorities - A New Policy Framework
in g the same average tariff, revenue from power
sales toThailand increased by about 10%.
Lahmeyer International, 1990.
6 Johnston, 2000.
7 Acreman et al, 2000; W CD Thematic II. 1
Ecosystems.
8 465 cases in the U nited States, 3 in France,
1 in N orway a few in C anada.
9 R even ga et al, 2000.
10 M any countries are in the early stages of
developing EFRs, for example adopting and
implementing relevant legislation, making
enquiries into available environmental flow
methodologies and developing policy but are
not necessarily at the stage of formally
undertaking EFRsor determining EFRsfor
freshwater systems. A t least 29 countries
have used EFRs including: A ustralia, A ustria,
Canada, Denmark, Finland, France, Germa-
ny Hungary Indonesia, Ireland, Italy Japan,
Korea, Lesotho, M oldavia, N amibia, N ew
Zealand, N orway Portugal, Puerto Rico,
South A frica, Spain, Swaziland, Sweden,
Switzerland, Taiwan, The Czech Republic,
The N etherlands. The U kraine. The U nited
Kingdom, The United States. The following
countries are exploring the use of EFRs:
A ngola, Botswana, Brazil, Chile, Israel,
M exico, M ozambique, N epal, Thailand,
Vietnam, Zimbabwe. Tharme, 2000.
11 Benefit sharing through Equity Shares-
M inashtuk Project in Canada. The M inash-
tuk project in Canada illustrates benefit
sharing through a limited partnership
company Fi ere the Band Council of the
M ontagnaisof Lac Saint-Jean is the majority
shareholder with a 50.1% share and Hydro
Quebec owns the remaining 49.9% of the
shares. M inashtuk is the first project devel-
oped by Hydro-lnnu. Besides guaranteeing a
share in profits, it allows the M ontagnaisto
design a project according to their priorities
and in the long-term reinvest the profits in a
manner that supports the economic develop-
ment of their community M ilewski et al
1999, SOC196, W CD Submission.
12 ISO 14001 is an internationally recognised
standard that identifies the basic processes of
an environmental management system
(EM S). It allows an organisation to effective-
ly identify monitor and control its environ-
mental impacts. It does not specify perform-
ance requirements, beyond a commitment to
comply with applicable regulations and other
commitments. The standard enables third-
party certification for organisations that
conform to its specifications. W hile there are
many modelsfor EM S design, the ISO 14001
standard is emerging as the dominant
standard, with over 17,000 certificates
granted asofjune2000. Concernsdo,
however, exist whether ISO standards can
assure changed performance effectively
Corbett and Kirsch, 200.
13 'Rivers' is used here as a general term. The
strategic priority and policy principles relate
equally to all types of waters which are or
might be impacted by dams.
14 The term 'riparian State' is used to mean any
State through which a transboundary river
flows or forms part of its boundary or which
includes part of the catchment area of a
transboundary river.
The Report of the World Commission on Dams
257
Chapter 9:
Criteria and Guidelines -
Applying the Strategic Priorities
Many technical guidelines for
the construction of dams
and their associated infrastructure
have been developed by professional
technical networks to ensure high
engineering and quality standards
W hat is lacking is a comprehensive
and integrated framework for decision-
making on the provision of water and
energy services. TheC ommission 's
contribution is to provide a framework
that emphasises a structured process
incorporating the full range of social,
environmental, technical, economic
and financial criteria and standards
Chapter 9
The framework is built upon the seven
strategic priorities described in Chapters
and derives its strength from recognising the
ri gh ts an d assessi ngtherisl<sofallstal<e-
holders in the process.
Social, environmental, governance and
compliance aspects have been undervalued
in the past. It is here that applying the
Commission's proposals will make a differ-
ence. T he framework identifies key decision
points and incorporates associated criteria
that translate the C ommission's policy
principles into a programme for implemen-
tation. Within this framework the Commis-
sion proposes a set of guidelines firmly
anchored in examples of good practice from
the Knowledge Base to describe how its
policy principles can be realised. These
guidelines add to existing decision-support
Figure 9.1 WCD Criteria and Guidelines strengthen other decision support
instruments
1
WCD
Criteria
and
Guidelines
Professional
organisations
Standards
Sector guidelif
instruments and should be incorporated by
governments, professional organisations,
financing agencies, civil society and others
as they continue to improve their own
relevant guidelines and policies over time
(see Figure 9.1).
T his chapter shows how implementing a
decision-making process based on the
Commission approach will safeguard rights,
reduce the risk of conflicts emerging, and
lower overall costs. T he framework provides
the opportunity for agencies and communi-
ties to screen out unfavourable alternatives
at an early stage. It is intended to open
channels of dialogue between stakeholders,
increase mutual understanding and help
decision-makers, practitioners and affected
people assess whether needs have been
adequately addressed. Proposals for dam
projects that emerge from the
screening process will have greater
public acceptance.
Turning the strategic priorities
and their underlying policy
principles into reality requires a
new focus for planning and
management in the water and
energy sectors. This chapter
concentrates on what needs to
change in the way water and
energy management plans are
developed and projects are de-
signed and implemented. Bringing
about this change will require:
■ plannersto identify stakehold-
ers through a process that
recognises rights and assesses
risks;
■ States to invest more at an
earlier stage to screen out
inappropriate projects and
facilitate integration across
260
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
sectors within the context of the river
basin;
■ consultants and agencies to ensure
outcomes from feasibility studies are
socially and environmentally acceptable;
■ the promotion of open and meaningful
participation at all stages of planning
and implementation, leading to negotiat-
ed outcomes;
■ developers to accept accountability
through contractual commitments for
effectively mitigating social and environ-
mental impacts;
■ improving compliance through inde-
pendent review; and
■ dam owners to apply lessons learned from
past experiences through regular moni-
toring and adapting to changing needs
and contexts.
The changes will involve reform of existing
planning processes and an emphasis on the
key stages where decision-makers and
stakeholder groups can verify compliance.
A mong the multitude of decisions to be
taken, five critical decision points have
been identified as having a particularly
strong influence on the final outcome. T he
first two relate to water and energy plan-
ning, leading to decisions on a preferred
development plan.
1. N eeds assessment: validating the needs
for water and energy services.
2. Selecting alternatives: identifying the
preferred development plan from among
the full range of options.
W here a dam emerges from this process as a
preferred development alternative, three
further critical decision points occur.
3. Project preparation: verifying that
agreements are in place before tender of
the construction contract.
4. Project implementation: confirming
compliance before commissioning.
5. Project operation: adapting to changing
contexts.
T he contractual steps of signing agreements
and issuing licences are located within this
overall framework. A Ithough in these latter
stages the Commission has focused on issues
related to dam projects, the principles and
general guidance presented here are also
relevant to non-dam options for water and
energy services.
The five decision points are supported by a
set of k&/ criteria that describe the processes
required for compliance. The criteria are
presented in the form of checklists for each
decision point that provide a clear and open
mechanism for determining whether the
C ommission's recommendations have been
followed and the process can proceed to the
next stage of planning or implementation.
T he criteria cover the full planning and
project cycles and include aspects related to
existing dams. There are also
many dams currently in the
planning, design, or construction
stage. T hese 'dams in the pipe-
line' should also be assessed to
identify improvements that can
be made. Practical steps are
proposed to determine the extent
to which such current projects
comply with the C ommission's
recommendations, and to identify
how any needed adjustments can
be made.
Five critical decision
points fiave been
identified as tiaving a
particuiariy strong
influence on the final
outcome. They are
supported by a set of
key criteria tliat describe
the processes required
for compliance.
Recognising that guidelines are
available from other sources, the Commis-
sion focused principally on what needs to be
done differently. Introduction of a new
decision-making framework through appli-
The Report of the World Commission on Dams
261
Chapter 9
cation of the criteria and guidelines will add
significant value to existing processes and
form a basis for good practice in water and
energy resource development. Taken togeth-
er, the criteria and guidelines will improve
development outcomes and minimise
problems encountered in the past.
Five Key Decision Points:
The WCD Criteria
A s noted, the C ommission has identified
five key stages and associated decision
points for the energy and water sector. T he
most fundamental of these is selection of the
preferred development plan. This deter-
mines what options will be pursued to meet
needs and whether or not a dam is to be
built. This decision is only taken after needs
and the available options to meet those
needs have been fully assessed. Each of the
five stages requires a commitment to agreed
procedures culminating in a decision point
that governs the course of future action and
allocation of resources (see Figure 9.2) . A t
each decision point it is essential to test
compliance with preceding processes before
giving authority to proceed to the next
stage. T hese points are not exhaustive, and
within each stage many other decisions are
taken and agreements reached. T he five key
stages and associated decision points are
generic and need to be interpreted within
the overall planning contexts of individual
countries.
1. N eeds assessment: validating the needs for
water and energy services. Confirmation is
required that plans for water and energy
development reflect local and national
needs adequately A n appropriate decentral-
ised consultation process is used to validate
the needs assessment and modify it where
necessary.
2. Selecting alternatives: identifying the
preferred development plan from among the full
range of options. The preferred development
plan is selected through a participatory
multi-criteria assessment that gives the same
significance to social and environmental
aspects as to technical, economic and
financial aspects and covers the full range of
policy programme, and project options.
W ithin this process, investigations and
studies are commissioned on individual
options to inform decision-making as
required; for example, demand-side
management studies or feasibility studies.
W here a dam emerges as a preferred option, the
following key decision points occur for
project preparation, implementation and
operation.
3. P roject preparation: verifying agreements are
in place before tender of the construction
contract. T he preparation stage covers
detailed planning and design. Licences
issued for development of a project incorpo-
rate any conditions that emerge from the
options assessment process. Tendering the
construction contract is conditional upon
reaching negotiated agreements for benefit-
sharing mechanisms and for mitigation,
compensation, development and compli-
ance measures, in addition to technical
requirements.
4. Project implementation: confirming
compliance before commissioning. T he
implementation stage covers procurement
and construction. Issuing the licence to
operate is contingent on implementation of
specific benefit sharing and mitigation
measures at various stages through the
implementation period. Compliance with
all relevant time-bound commitments is
required before commissioning the project.
262
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
5. Project operation: adapting to clianging
contexts. A ny decisions to modify facilities,
operating rules, and licence conditionsto
meet changing contexts are based on a
participatory review of project performance
and impacts.
T he five key stages and decision points
provide a framework within which decision-
makers and stakeholder groups can be
assured of compliance with agreed proce-
dures and commitments. T he benefits of this
approach include lowering risks to liveli-
hoods and cost escalation, reducing the
number of disputes, and encouraging local
ownership. In the short term, additional
financial resources for needs and options
assessment will be required to achieve
compliance with the C ommission's policy
principles, and efforts will be required to
strengthen institutional capacity. In the
longer term, the potential exists for major
cost savings and increased benefits.
The remai nder of this chapter descri bes each
ofthefive key decision points and providesa
related list of criteria for checking compliance.
Stakeholder involvement is central to these
processes The composition of a forum of
stakeholder groups associated with each stage
is different and evolves throughout the process
(see G uideline 1: Stakeholder A nalysis) .
Figure 9.2 Five key decision points in planning and project
development
ijijj.L-iA.m4.y.iJ
Validate the needs
for water and
energy services
Criteria 1
■
I
Selecting Alternatives
Identify the preferred
development plan among
the full range of options
Policy, programme,
projects
A ssig n
responsiblity for
implementation
Project Preparation
Verify agreements are
in place before tender of
the construction contract
Criteria 3
Project Implementation
Confirm compliance
before commissioning
Criteria 4
Project Operation
Adapt to
changing context
Criteria 5
<t P
The Report of the World Commission on Dams
263
Chapter 9
Stage 1: Needs assessment:
water and energy services
Intended outcome
A clear statement of water and energy services
needs at local, regional, and national levels
that reflects decentralised assessments and
broader national development goals. An
assessment based on participatory methods
appropriate to the local context resulting in a
clear set of deve/opment objectives that guide
the subsequent assessment of options.
Determining needs and setting priorities
between and within sectors are continuous
processes specific to individual countries.
T he C ommission's policy principles describe
characteristics that should be reflected in
such processes and define a shift in emphasis
to more open and inclusive procedures.
C ountry-level responses are required to
ensure that priority setting embodies a fair
representation of basic water and energy
needs and provides the appropriate balance
between local and national demands.
A country's policy framework for water,
energy social issues and the environment
guides the whole planning process. The
open and participatory approach to needs
and options assessment envisaged by the
Commission requires a review of these
policies to identify and address elements
that may hinder its implementation.
The primary influence defining a country's
portfolio of development activities, is a set
of development objectives that may be
embodied in a five-year plan or in a regula-
tory planning framework. Ensuring that the
outcome of the needs assessment for water
and energy services reflects stakeholder
priorities requires an entry point early in the
planning process. The Commission proposes
a validation process to confirm the setting of
validating tlie needs for
priorities and the formulation of develop-
ment objectives.
A n open and decentralised planning process
provides opportunities for public scrutiny In
situations where this has not been imple-
mented, a programme of national and sub-
national public hearings, targeted communi-
ty consultations, and field surveys can assess
the validity of the needs assessment. The
subject of the consultations may relate to an
overall development strategy master plan,
sector plan, or basin plan, and the breadth
of consultation can be determined accord-
ingly The WCD Knowledge Base demon-
strates the need for such a review, since
plans are often narrowly focused, reflect
social and environmental impacts inade-
quately are weak in identifying affected
groups, and fail to deal adequately with the
distribution of costs and benefits.
In countries where a large proportion of the
population does not have access to basic
services, a key parameter in the validation
process should be the extent to which basic
human needs will be met. To ensure that
these needs are given prominence, the process
of validation should empower those who are
least ableto influence planning systems.
Responsibility for this validation process rests
with the State. Independent facilitation for
consultations and surveys and the presence of
civil society groups will enhance confidence
that the needs of disadvantaged groups are
being considered. Briefing materials, records of
meetings, and results of the overall process
should be available in appropriate languages. If
the development objectives are not confirmed
by the validation exercise, they should be
reviewed and updated using processes consist-
ent with the C ommission's policy principles
264
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 1 Criteria Clieclclist
NEEDS ASSESSMENT
Selecting alternatives Project Preparation Project Implementation Project Operation
N eeds assessments may have been conducted through a range of processes including national, regional, sector-specific, or
basin-wide plans. T he verification process to be applied will need to be tailored to suit the particular circumstances.
Gaining Public Acceptance
■ A consultation plan was developed using a
stakeholder analysis to define the groups in-
volved. The plan defines mechanisms for verify-
ing needs at the local, sub-national and national
level (G uideline 1).
■ Verification of the needs for water and energy
services was achieved through a process of public
consultation and the results of public consulta-
tion were disseminated to stakeholders.
■ Development objectives reflect a river-basin-
wide understanding of relevant social, economic,
and environmental values, requirements, func-
tions, and impacts that identifies synergies and
potential areas of conflict.
■ An appropriate process was established to address
any disparities between the needs expressed
through the public consultations and the stated
development objectives.
Comprehensive Options Assessment
■ Legal, policy and institutional frameworks were
reviewed and any bias against resource conserva-
tion, efficiency and decentralised options, and
any provisionsthat hindered an open and
participatory assessment of needs and options
were addressed.
Addressing Existing Dams
■ 0 utstanding social and environmental impacts
from past projects were evaluated and incorporat-
ed into the needs assessment (see Chapter 8,
policy principle 3.3).
Sustaining Rivers and Livelihoods
■ Ecosystem baseline studies and maintenance
needs were assessed at a strategic level (G uide-
Iinesl4, 15)
The Report of the World Commission on Dams
265
Chapter 9
Stage 2: Selecting alternatives: identifying the preferred
development plan
Intended outcome
A mix of alternatives tliat reflects the needs
and meets the development objectives has
been selected through a multi-cntena assess-
ment of the full range of policy, programme,
and project alternatives and included in a
preferred deve/opment p/an.
A major concern about past projects is that
too limited a range of options was consid-
ered before deciding to construct a dam. To
address this, the inventory of options must
respond to the agreed development objec-
tives (Stage 1) and explicitly identify the
beneficiary groups T he inventory of options
needs to be sufficiently diverse in terms of
policy, programme, and project alternatives,
project scale, and geographic coverage.
Strategic impact assessments provide an
initial level of screening to remove alterna-
tives that have unacceptable social and
environmental consequences They need to
reflect the importance of avoiding adverse
impacts and the precautionary approach.
The assignment of relative weights to
designate the importance of various parame-
ters should be a participatory process and
form the basis of a multi-criteria analysis to
screen and rank alternatives. For example,
the gestation period in delivering benefits,
the scale of adverse impacts and costs are all
key considerations.
The information available on each option
will not be at the same level of detail.
Decisions need to betaken during the
screening process on whether to commission
further investigations and studies on indi-
vidual alternatives, while at the same time
not jeopardising or delaying alternatives
that can deliver benefits within the short-
term.
Studies are required to assess the extent to
which policy and programme options can
meet the development objectives. T he
policy principles cover a number of such
areas, including:
■ optimising existing investments by
increasing operational efficiency and
improving productivity;
■ demand-side management assessment;
■ decentralised supply options and commu-
nity-level initiatives; and
■ policy and institutional reforms.
Some options will need reconnaissance, pre-
feasibility and feasibility studies appropriate
to the stage in the process and incorporating
social and environmental surveys and
impact assessments. The decision to allocate
financial resources to such studies should be
taken within the overall context of the
options assessment process. For example, it
may have been agreed that detailed investi-
gations of supply-side approaches should
await the outcome of demand-side studies
that could influence the scale of any project
intervention.
C riteria relevant to project-related studies
are described as a subset of the process of
selecting alternatives (see Stage 2A ). T he
findings of the studies are fed back into the
screening process for consideration with all
other remaining options. This approach
deviates from existing practice in many
countries by cutting the direct link between
the feasibility study and project approval. It
encourages a broader consideration of all
feasible options in setting priorities.
266
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 2 Criteria Clieclclist
Needs Assessment ^^^^^UI£injia|ajl£Kjl|I^^H Project Preparation Project Implementation Project Operation
Gaining Public Acceptance
■ Stal<eholders participated in creating the invento-
ry of options, assessing options, and in negotiating
those outcomes that may affect them (G uide-
linesl, 2).
■ An agreed dispute resolution mechanism for
negotiated processes was established with the
participation and agreement of stakeholders
(G uideline 2).
■ Indigenous and tribal peoples gave their free, prior
and informed consent to the inclusion in the
development plan of any planned option that
would potentially affect them (G uideline 3).
Comprehensive Options Assessment
■ Strategic impact assessments and life cycle analy-
sis were integrated and undertaken as an initial
step in the process fG uidelines 4, 7, 8, 14, 17).
m A multi-criteria assessment was used to screen and
select preferred options from the full range of
identified alternatives (G uideline 6).
■ The screening of options:
■ covered all policy, programme, and project
alternatives;
■ gave social and environmental aspects the
same significance as technical, economic and
financial factors;
■ gave demand-side options the same signifi-
cance as supply options;
■ prioritised consideration of improving perform-
ance of existing systems;
■ considered river-basin-wide aspects and
cumulative impacts;
■ took account of potential changes in climate; and
■ reflected the precautionary approach.
■ D istributional and risk analyses were conducted at
an appropriate level (G uidelines 9, 11) and
environmental and social impacts were valued
where appropriate (G uideline 10) .
■ A pproval to proceed with any project-level
investigations was informed by a comprehensive
assessment of options (see C riteria C hecklist 2A ).
■ Rejection of any options was explained in an
open and timely manner.
Addressing Existing Dams
■ Provisions were made for resolving outstanding
social and environmental impacts (see C hapter 8,
policy principle 3.3)
Sustaining Rivers and Livelihoods
■ An established policy exists to maintain selected
rivers with high ecosystem functions and values
in their natural state.
■ C onsideration of options took into account:
avoiding dams on the main-stem of rivers wherev-
er possible; avoiding or minimising negative
impacts on endangered species, ecosystems,
livelihoods, human health and cultural resources;
and respecting the provisions and guidance of
relevant international treaties.
Recognising Entitlements and Sharing
Benefits
■ For any project option, stakeholders negotiated
the guiding principles and criteria for: benefit-
sharing, mitigation, resettlement, development
and compensation measures (Guidelines 2, 18,
20).
Ensuring Compliance
■ Sufficient institutional capacity exists, or will be
enhanced, to monitor and enforce commitments
for social and environmental components.
Sharing Rivers for Peace, Development and
Security
■ A ny objections from riparian states were resolved
through good faith negotiations or independent
dispute resolution procedures (G uideline 26).
The Report of the World Commission on Dams
267
Chapter 9
Stage 2A: Investigative studies
The authority to proceed with a preparatory
study for a dam project should not be a signal
that the project will be implemented. Rather,
such a decision should be integrated into the
overall options assessment process. This will
provide a break in the traditional planning
cycle to encourage more open decision-
making. Viewing project options within the
overall framework of options assessment also
facilitates the rejection of projects that fail to
meet social and environmental objectives in
favour of better alternatives. T he W C D
Knowledge Base has demonstrated that more
rigorous estimates of project costs are also
required as a part of such studies, and the risk
of cost overruns must be fully considered in
the assessment process.
Meaningful participation in preparatory
studies is central to the success of the
investigation and the ultimate outcome.
Careful analysis to recognise the rights and
assess the risks of stakeholder groups is
essential. A forum of stakeholder groups
needs to be identified based on project
boundaries. A greement on the participatory
elements of the studies should be formalised
in a consultation plan.
The strategic impact assessment undertaken
early in the options assessment will have
outlined the key unknownsand the areas to be
investigated across all sectors. The issues will
be defined in more detail in the scoping stage
of project- related impact assessments. 0 n this
basis, terms of reference and work plans for the
diverse range of sector specialists can be
integrated. Project- related impact assessments
have to go beyond environmental and social
impact assessments to include health and
cultural impacts. To be effective, they require
an improved level of baseline studies.
Preliminary negotiations with project-
affected people, their community represent-
atives, and other stakeholders are central to
the preparatory studies in considering
mitigation measures for any unavoidable
adverse impacts and investigating benefit-
sharing plans. By the time a study reaches
feasibility stage, the scope of such measures
should be clearly defined in order to reduce
the likelihood of protracted negotiations
and a breakdown of discussions later in the
process. For the proposed project to be part
of a preferred development plan, the accept-
ance of the project affected people and the
prior informed consent of indigenous
peoples should be obtained.
U Itimately the results of the study including
any outstanding issues, will be fed back into
the screening and ranking exercise (see
C riteria C hecklist 2) for comparison with
remaining alternatives prior to any decision
to proceed further with detailed project
development. T he following plans, with
indicative budgets, need to be developed as
a minimum requirement to act as a founda-
tion for any further project planning:
■ an outline environmental management
programme, including provision for an
environmental flow to maintain down-
stream ecosystems;
■ an outline social mitigation, resettle-
ment, and development plan; and
■ an outline monitoring plan, including
outcome-based indicators.
A compliance plan will be required to
cover these aspects and other regulatory
requirements throughout subsequent
stages of project planning, development,
and operation.
268
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 2A Criteria Clieclclist
Needs Assessment
SELECTING ALTERNATIVES
Project Preparation Project Implementation
Project 0 peration
Project- related pre-feasibility and feasibility studies need to meet the following criteria. Policy and programme related
studies may also be required, and are covered in C riteria C hecklist 2.
Gaining Public Acceptance
■ Stal<eholders participated in baseline, impact and
investigative studies and the negotiation of
outcomes that potentially affect them (G uide-
linesl, 2, 14, 17).
■ The studies and impact assessments were open
and independent, and were preceded by a partici-
patory scoping phase (G uideline 5).
Comprehensive Options Assessment
■ The investigations were analysed on a river-
basin-wide understanding of social, economic,
and environmental values, requirements, func-
tions, and impacts including cumulative impacts,
and the precautionary approach was applied, (see
G uideline 5).
■ The recommendations of studies undertaken on
resource conservation measures, demand-side
management, local supply-side options and
improvement of existing systems were reflected
in the demand forecast for the sector.
■ Wi thin-project alternatives were assessed using a
multi-criteria approach (G uideline 6).
Addressing Existing Dams
■ Studies examined possible synergies from interac-
tive operation of related water resource infra-
structure in the basin.
Sustaining Rivers and Livelihoods
■ An environmental flow requirement to maintain
downstream species, ecosystems and livelihoods
was defined (G uideline 15).
■ I mpacts on fish have been assessed and measures
to avoid or minimise impacts were considered,
including an effective fish pass where feasible
(G uideline 16).
Recognising Entitlements and Sharing
Benefits
■ Stakeholders negotiated agreements for com-
pensation, mitigation, resettlement, develop-
ment and monitoring measures affecting them,
including draft contracts where necessary
(G uideline 19).
■ Effective benefit-sharing strategies were identi-
fied and agreed with people adversely affected
by the project (G uideline 20).
Ensuring Compliance
■ I nstitutional capacity to monitor and enforce
commitments for social and environmental
components of the project was analysed and
measures to strengthen capacity identified.
■ An independent panel reviewed the assessment
of impacts and the planning of social and
environmental mitigation plans (G uideline 22).
Sharing Rivers for Peace Development and
Security
■ Riparian states were notified of options affecting
them and agreed procedures for impact assess-
ments. 0 bjections were addressed through good
faith negotiations and agreed dispute resolution
procedures (G uideline 26).
The Report of the World Commission on Dams
269
Chapter 9
Stage 3: Project preparation: verifying commitments are
in place before tender of tlie construction contract
Intended outcome
Clearance to tender the construction contract
is given by the relevant authority and includes
conditions for the award of the contract and
operations. Mitigation and monitoring
measures are formalised into contracts
between responsible parties, and compliance
arrangements are in place.
TheCommission considers that all large dams
should have time-bound licences. W here a
large dam emerges as a preferred option, a
licence for project development should be
issued to the developer by the appropriate
regulatory agency. Project preparation contin-
ues with detailed planning and design stages,
including drafting of tender documents and
plans for benefit-sharing and mitigation.
A daptation of the criteria described here may
be necessary where the design and construc-
tion are part of a single package.
N egotiations with all project-affected
people, their community representatives,
and other stakeholders will continue in
good faith based on the outline agreements
reached during the feasibility stage. They
would cover all environmental and social
plans; development programmes, including
benefit-sharing plans; and construction-
related issues. A clear agreement with the
affected people on the sequence and stages
of resettlement will be required before
construction on any project preparatory
works begins, such as access roads or river
diversion works. In cases where these
negotiations stall, an independent dispute
resolution process is required. The negotiat-
ed agreements will result in signed contracts
between the developer and affected commu-
nities and individuals, with clear targets for
assessing compliance.
T he responsibilities of the developer in
relation to mitigation, development of
affected communities, and benefit-sharing
will be clearly reflected in the licence and
the compliance plan. The operation phase
should be contingent on compliance with
specific commitments identified in the
licence. Conditionsfor impoundment and
commissioning should be explicitly stated.
If the tender cost estimate is substantially
higher than the feasibility study estimate,
the choice of project should be reviewed to
see if it still meets the selection criteria. A
similar check is required if needs have
changed substantially since the outset, or if
the project scope has changed materially. If
the actual price of the lowest responsive
tender exceeds agreed cost limits, procure-
ment should be interrupted and options
reviewed.
Social and environmental mitigation
measures should be defined in the tender in
similar detail to construction elements,
namely the 'bill of quantities'. The tender
should clearly identify responsibilities of the
contractor, the developer, and the govern-
ment in relation to:
■ the environmental management plan;
■ measures to mitigate adverse social
impacts, including development opportu-
nities for affected communities;
■ access to and management of new
resources in the reservoir;
■ the construction method and schedule,
and the construction camp;
■ impact monitoring and reporting during
the operations stage; and
■ compliance instruments.
270
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 3 Criteria Clieclclist
N eeds Assessment Selecting Alternatives ^^^^laMUjiaUjlj2jl|Mi^^H Project Implementation Project Operation
Gaining Public Acceptance
■ Stalceholders participated in the project design
and the negotiation of outcomes that affect them
(G uidelines 1, 2).
■ Indigenous and tribal peoples gave their free,
prior, and informed consent to the project as
designed (G uideline 3).
Comprehensive Options Assessment
■ The stakeholder forum participated in assessing
alternatives for the detailed layout of the dam,
associated infrastructure, and its operation.
Addressing Existing Dams
■ C umulative and interactive impacts of existing
infrastructure were addressed in the design of the
dam and agreements reached with stakeholders
and operators to modify operating rules of exist-
ing dams where needed.
Sustaining Rivers and Livelihoods
■ A cceptable rules were developed for reservoir
filling, commissioning and operation.
■ The final design includes provisions for
emergency drawdown and decommissioning and
is sufficiently flexible to accommodate changing
future needs and val ues, including ecosystem
needs and ecosystem restoration (G uideline 12).
■ An environmental management plan incorporat-
ing environmental flows and other mitigation
and enhancement measures was agreed with
stakeholders and defines monitoring and evalua-
tion programmes
■ The developer provided sufficient evidence to
demonstrate that proposed mitigation and
development measures will be effective in meet-
ing their objectives.
Recognising Entitlements and Sharing
Benefits
■ M itigation, resettlement, monitoring, and devel-
opment plans were agreed with affected groups,
and relevant contracts signed (G uideline 19).
■ Detailed benefit sharing mechanisms, and the
means to deliver them, have been agreed and set
in place with affected groups (G uideline 20).
Ensuring Compliance
■ Independent panels reviewed and endorsed
mitigation plans (G uideline 22).
■ Provisional sums for mitigation are included in the
tender, and their financing has been confirmed.
■ A Compliance Plan was prepared, presented to
the stakeholder forum and formalised. I ndividual
compliance measures include mechanisms for
dispute resolution (G uideline 21).
■ Thedeveloperhasallocated fundsforan effective
monitoring and evaluation system covering
project performance, safety and impacts. Institu-
tional capacity exists to monitor and enforce
agreements effectively.
■ A transparent process for short-listing contractors
and selecting tenders is in place and contractors
with a record of under-performance or corruption
on past projects were identified and debarred
where appropriate.
■ Relevant performance bonds have been secured,
trust funds established and integrity pacts signed
(Guidelines 23, 24, 25).
■ The licence for project development defines the
responsibility and mechanisms for financing
decommissioning costs.
Sharing Rivers for Peace, Development and
Security
■ Resolution was achieved where affected riparian
states had outstanding objections (G uideline 26).
The Report of the World Commission on Dams
271
Chapter 9
Stage 4: Project implementation: confirming compliance
before commissioning
Intended outcome
Clearance to commission the project is given
by the relevant authority after all commitments
are met. Relevant elements of performance
bond sureties are released. The operating
licence is confirmed, including specific
requirements for monitonng, periodic review
and adaptive management.
Issuingthelicenceto operate will be contin-
gent on compliance with mitigation measures
in addition to technical requirements. T he
licence will contain a number of conditions
for the operation stage, including compliance
with operating rules, public notifications, dam
safety, monitoring and periodic review. A II
contingencies cannot be anticipated, and a
balance should be struck on a case-by-case
basis between the necessary level of certainty
and sufficient flexibility to accommodate
open, transparent, adaptive management.
Phasing of resettlement is required where
the reservoir is being impounded as the dam
is constructed. Special attention is necessary
to ensure that compensation and develop-
ment measures are in place well in advance.
Reservoir filling, commissioning of produc-
tive capacity and the initial years of opera-
tion are critical phases that require special
attention, intensive monitoring and contin-
ued dialogue with stakeholder groups.
A greements on operating conditions are
required for three stages of commissioning;
■ reservoir filling;
■ test operation; and
■ initial operation.
Full compliance with technical, environ-
mental and social measures must be
achieved before the project is commissioned
and enters full operation. This includes the
broad commitments of the project developer
as laid down in the project licence, compli-
ance plan, and related agreements, as well as
the commitments of the contractor acting as
agent of the developer. 0 nee the developer
has met specified staged commitments, the
associated financial sureties of any perform-
ance bond or outstanding contractual
payments may be released.
A rrangements for public safety must be in
place in order to warn the downstream
population that sudden releases of water
may occur and may be dangerous. C ompen-
sation should be paid for any loss of liveli-
hood, such as the loss of fishing opportuni-
ties. If test operations cause downstream
inconvenience, compensation should also
be paid - for example, if a test takes place
during the dry season and damages recession
agriculture plots.
A range of agreements on initial and long-
term operation should be incorporated in
the operating licence and provisions for
implementation verified. Licence periods
should not normally exceed 30 years. T hey
should include:
■ agreement on environmental flow releases
to the downstream river;
■ releases to the downstream river for other
functions (navigation, water supply
downstream irrigation);
■ operating rules during normal and excep-
tional floods;
■ procedures for opening spillway gates;
■ monitoring and publication of relevant
operation data; and
■ periodic review of operating rules.
272
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 4 Criteria Clieclclist
N eeds Assessment Selecting Alternatives Project Preparation
PROJ ECT IMPLEMENTATION
Project Operation
Gaining Public Acceptance
■ Stalceholders participated in monitoring mitiga-
tion measures and in negotiating outcomes that
affect them (Guidelines 1, 2).
■ Consultation mechanisms were agreed in
advance with stakeholders for any technical,
social, environmental, or other problems that
may be encountered during reservoir filling
and commissioning.
■ C ontingency plans for emergency drawdown of
the reservoir were agreed with stakeholders
before commissioning and were widely
disseminated.
Comprehensive Options Assessment
■ A ffected stakeholders have reviewed any changes
proposed to the tender design that substantially
affect impacts, mitigation measures, benefit
sharing, operational practices, or the monitoring
programme.
Addressing Existing Dams
■ Institutional co-ordination mechanisms that
recognise interactive effects and cumulative
impacts are in place to adjust operation of
existing dams.
Sustaining Rivers and Livelihoods
■ Required environmental mitigation measures
were implemented.
Recognising Entitlements and Sharing
Benefits
■ The mitigation, resettlement and development
action plan has been implemented and disputes
resolved (G uideline 19).
Ensuring Compliance
■ An independent panel reviewed and endorsed
implementation of social, environmental, health
and cultural heritage mitigation measures (G uide-
line 22).
■ Preparations have been made to implement
licence conditions for operations, implement
continuing mitigation measures, undertake
monitoring and regular evaluation, and dissemi-
nate information.
■ M onitoring of social, environmental and techni-
cal aspects includes an intensive phase to cover
the rapid changes that occur in the impoundment
and commissioning period.
■ The developer has complied with pre-commis-
sioning commitments as defined in the Compli-
ance Plan (G uideline 21).
Sharing Rivers for Peace, Development and
Security
■ M echanisms were initiated for sharing monitor-
ing information with riparian provinces or States
(Guideline26).
The Report of the World Commission on Dams
273
Chapter 9
Stage 5: Project operation: adapting to clianging
contexts
Intended outcome
Conditions for operating undertlie licence are
fulfilled and the licence conditions modified as
necessary to adapt to changing contexts.
Monitoring programmes feed back into project
operation. A process is initiated to decide on
reparations, if necessary.
The objectives of dam management need to
be transformed from purely technical to
development-oriented goalsthat include social
and environmental considerations. This has
major repercussions for operation, monitoring,
and evaluation of both existing dams and
dams implemented in the future. Adaptive
management is needed to continuously assess
and adjust operational decisions within the
changing context of environmental, social,
physical and market conditions. T his requires
a close relationship between the local commu-
nity other stakeholders and dam owners and
operators in order to minimise problems and
quickly resolve any that do arise.
M onitoring programmes should:
■ include a full rangeof technical, environ-
mental, social, and economic parameters
decided openly with the stakeholders;
■ have an intensive phase in the first five
years, or after a major change in operation;
■ feed back into project operations; and
■ be available to all stakeholders, perhaps in
the form of an annual report.
A comprehensive project evaluation is
required three to five years after commission-
ing and at regular intervals thereafter (every
five to ten years is suggested) .The evaluation
is undertaken by the dam operator but is a
stakeholder-driven process and may draw on
the C ommission's case study methodology.
T he evaluations would be:
■ comprehensive across all environmental,
social, economic, and institutional
impacts;
■ integrated to cover the interactions
between impacts;
■ long-term to consider impacts over
several decades; and
■ cumulative to reflect impacts of other
structural and non-structural measures in
the basin.
In addition to periodic evaluations, parties
other than the dam operator, or exogenous
factors may prompt re-planning studies. For
example, a strategic or sectoral impact
assessment may indicate the need for a re-
planning exercise for a group of projects.
Licence conditions should make provision
for such studies and for any required changes
to operating conditions through good faith
negotiations that recognise the rights of all
parties. A ny re-planning studies should be
done on the basin level.
Licences should specify transparent processes
for stakeholder participation in operations and
procedural requirements for monitoring and
evaluation, safety inspection, contingency
planning and information disclosure. The
regulatory authority or responsible govern-
ment line agency must ensure compliance
with provisionsof the licence. Non-commer-
cial aspects of the licence should be made
public. Re-licensing procedures should exam-
ine present-day alternatives and be informed
by an integrated review of project performance
and impacts. Impact assessments should be
undertaken for all major changes including
decommissioning where dams are no longer
required or are too expensive to maintain.
274
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
Stage 5 Criteria Clieclclist
N eeds Assessment Selecting Alternatives Project Preparation Project Implementation
PROJ ECT OPERATION
T hese criteria are rda/ant to botli edsting dams ( C liapter 8, Strategic P riority N o. 3) and tlie operational stages of future dams.
Gaining Public Acceptance
■ Stal<eholders are identified for consideration of
operational issues and any proposed changes that
impact on them or the environment (G uideline 1) .
Comprehensive Options Assessment
■ Periodic evaluations of all aspects of project opera-
tion and performance are undertaken with the
involvement of the stakeholder forum every 5 to 10
years and agreements renegotiated as necessary.
■ M odernisation programmes and alternative
operational regimes are considered as part of
periodic reviews, replanning, or relicensing
exercises through a participatory multi-criteria
approach (G uideline 13).
■ M onitoring and evaluation programmes should
explicitly consider the influence of climate
change (namely increasing and decreasing rainfall
and flows) on benefits and dam safety.
■ A full feasibility study, including analysis of
alternatives and impact assessment, is undertaken
for any proposal for any major physical change,
including decommissioning.
Sustaining Rivers and Livelihoods
■ Operations take account of environmental flow
requirements (quantity and quality) and ecosystem
and social impacts are monitored (Guideline 15).
Recognising Entitlements and sharing
benefits
■ Detailed benefit-sharing mechanisms are modi-
fied as necessary with the agreement of affected
groups (G uideline 20).
Ensuring Compliance
■ A dverse social and environmental impacts and
reparations issues are referred to the appropriate
recourse body (G uideline 19).
■ Annual reportsof project monitoring pro-
grammes, including social and environmental
aspects, are issued promptly and corrective
measures are initiated to address issues raised in
the reports.
■ The requirements of remaining performance
bondsor trust funds outlined in the Compliance
Plan are periodically reviewed, and financial
guarantees are released on satisfactory compli-
ance with agreed milestones (G uideline 23).
■ Dam safety and inspection programmes are
implemented.
Sharing Rivers for Peace, Development
and Security
■ M echanisms exist to share monitoring informa-
tion and resolve issues as they arise.
The Report of the World Commission on Dams
275
Chapter 9
The Commission's
Knowledge Base has
demonstrated that it is
never too late to
improve outcomes.
A Special Case: Dams in
tlie Pipeline
The strategic priorities and policy principles
outlined in Chapter 8 are as relevant to
projects already at an advanced stage of
planning and development as they are to
the selection of a project in the earlier
options assessment stage.
C urrently a large number of dam
projects are at various stages of
planning and development.
W hile acknowledging that
delays in implementation can
cause unacceptable delays in
delivering intended benefits the
WCD Knowledge Base has
demonstrated that it is never too late to
improve outcomes 0 n this basis the
Commission proposes an open and partici-
patory review of ongoing and planned
projects to ascertain the extent to which
project formulation can be adapted to
accommodate the principles outlined in this
report.
T he essence of the process is that stakehold-
er groups should have an opportunity to
define the scope of the review and to
propose changes in keeping with the C om-
mission's recommendations The extent of
any additional study or changes in project
configuration would depend on the stage of
planning, design, or construction and be
determined from a synthesis of the stake-
holder consultations and, where appropriate,
an inter- ministerial review. General actions
to guide the review for all projects would
include:
■ undertake a stakeholder analysis based
on recognising rights and assessing risks
to identify a stakeholder forum that is
consulted on all issues affecting stake-
holders;
■ provide support to vulnerable and
disadvantaged stakeholder groups to
participate in an informed manner;
■ undertake a distribution analysis to assess
who shares the costs and benefits of the
project;
■ develop agreed mitigation and resettle-
ment measures to promote development
opportunities and benefit- sharing for
displaced and affected people;
■ avoid, through modified design, any severe
and irreversible ecosystem impacts
■ provide for an environmental flow
requirement and mitigate or compensate
any unavoidable ecosystem impacts and
■ design and implement recourse and
compliance mechanisms
G overnments may also use the review of
'dams in the pipeline' as an opportunity to
compare the existing policy framework for
planning and implementation of water and
energy options with the criteria and guide-
lines proposed by the C ommission. T his can
serve to launch a process of internal review
and modification of existing policies and
legislation, and reinforcement of appropriate
capacity that will facilitate implementation
of the C ommission's recommendations in
future.
A t specific stages of planning and project
development, regulators developers and,
where appropriate, financing agencies
should ensure that the following project-
related points are addressed:
Projects at feasibility stage
■ T he stakeholder forum confirmed that
the set of options considered was appro-
priate, or identified other alternatives to
consider as part of the project impact
assessment.
276
Dams and Development: A New Framework for Decision-Making
Criteria and Guidelines - Applying the Strategic Priorities
■ A ny bias in selection of alternatives is
removed or justified in a transparent
fashion (for example subsidies to particu-
lar sub-sectors or groups) .
■ Demonstrated public acceptance exists
for the recommended options.
■ T he assumptions underlying the econom
ic, financial, and risk analysisarejustified
and subject to sensitivity analysis
■ M echanismsfor benefit-sharing are
identified.
■ An environmental flow requirement is
determined.
Projects at detailed design stage
■ T he stakeholder forum is consulted on
decisions related to project layout,
operation and mitigation and develop-
ment measures and relevant agreements
are negotiated with affected groups.
■ Environmental flow requirements are
determined and incorporated into the
design and operation rules.
■ A Compliance Plan is prepared, and
recourse mechanisms are identified.
■ C ompliance mechanisms are provided
for in tender documents.
■ Benefit-sharing contracts are negotiated
for displaced and project affected people.
■ A process for stakeholder involvement
during operation is established.
Projects under construction
■ The record of compliance is reviewed
and a compliance plan is developed for
remaining mitigation measures.
■ Existing commitments for resettlement
and benefit- sharing are converted into
formal contracts.
■ An adequate social, environmental and
technical monitoring plan is financed by
the developer.
■ The operating rules and
commissioning plan are
agreed with a stakeholder
forum.
■ A comprehensive post-
project review is agreed for
two to three years after
commissioning, and every
five to ten years thereafter.
This process of review implies
added investigations or commit-
ments, the re-negotiation of
contracts and the incorporation
of a Compliance Plan. A sin the case of
initial planning, the additional financial
costs incurred will be recouped in lower
overall costs to the operator, to government,
and to society in general as a consequence of
avoiding negative outcomes and conflicts.
Governments may also
use the review of 'dams
in the pipeline' as an
opportunity to compare
the existing policy
framework for planning
and implementation of
water and energy
options with the criteria
and guidelines
proposed by the
Commission.
The Report of the World Commission on Dams
277
Chapter 9
A Set of Guidelines for
Good Practice
The guidelines outlined here describe in
general terms how to assess options and plan
and implement dam projects to meet the
Commission's criteria. The 26 guidelines
add to the wider range of technical, finan-
cial, economic, social and environmental
guidelines. T hey are advisory tools to
support decision-making and need to be
considered within the framework of existing
Strategic Priority 1: Gaining Public
Acceptance
1 Stakeholder A nalysis
2 N egotiated Decision-M aking Processes
3 Free, Prior and Informed Consent
Strategic Priority 2: Comprehensive
Options Assessment
4 Strategic Impact A ssessment for Envi-
ronmental, Social, H ealth and C ultural
H eritage Issues
5 Project-Level Impact A ssessment for
Environmental, Social, H ealth and
C ultural H eritage Issues
6 M ulti-C riteria A nalysis
7 Life Cycle A ssessment
8 Greenhouse Gas Emissions
9 Distributional A nalysis of Projects
10 Valuation of Social and Environmental
Impacts
11 Improving Economic Risk A ssessment
Strategic Priority 3: Addressing
Existing Dams
12 Ensuring 0 perating Rules Reflect Social
and Environmental Concerns
13 Improving Reservoir Operations
international guidance and current good
practice. Further information is available on
many of these aspectsin the W CD Knowl-
edge Base.
T he guidelines are presented under the same
sub headings as the C ommission's seven
strategic priorities. There are clear linkages
between individual guidelines and cross
references to them are given in the criteria
checklists for the key decision points of the
planning and project cycles.
Strategic Priority 4: Sustaining
Rivers and Livelihoods
14 Baseline Ecosystem Surveys
15 Environmental Flow A ssessment
16 M aintaining Productive Fisheries
Strategic Priority 5: Recognising
Entitlements and Sharing Benefits
17 Baseline Social Conditions
18 Impoverishment Risk A nalysis
19 I mplementation of the M itigation.
Resettlement and Development A ction
Plan
20 Project Benefit-Sharing M echanisms
Strategic Priority 6: Ensuring
Compliance
21 Compliance Plans
22 Independent Review Panels for Social
and Environmental Matters
23 Performance Bonds
24 Trust Funds
25 Integrity Pacts
Strategic Priority 7: Sharing Rivers
for Peace, Development, and
Security
26 Procedures for Shared Rivers
278
Dams and Development: A N ew Framework for Decision-M aking
Gaining Public Acceptance
1. Stakeholder Analysis
T he absolute value and the relative signifi-
cance of 'stakes' vary, especially in what
they represent for the interested party.
Stakeholders have unequal power and this
can affect their ability to participate in and
influence decisions. A stakeholder analysis
based on recognising rights and assessing
risks should be used to identify key stake-
holders for planned activities. T he analysis
will also seek to understand and address
potential factors that may hinder their
involvement. The analytic approach can
involve stakeholder workshops, community-
level surveys, key informant surveys, and
literature review.
T he stakeholder analysis leads to the
constitution of a temporary stakeholder
forum as a basis for participation and, where
relevant, negotiation processes throughout
the planning and project cycles. A stake-
holder forum is a dynamic construct and will
need to be applied to meet changing needs
through the planning and project cycles
beginning with needs assessment/verifica-
tion and options assessment. T he composi-
tion of a stakeholder forum, the level of
representation of various interests, and the
means of facilitating the process changes
from stage to stage.
T he stakeholder analysis will:
■ R ecogn ise existing riglits and those wlio ho/d
them. T hose groups whose livelihoods,
human rights and property and resource
rights may be affected by an intervention
are major rights holders and thus core
stakeholders in a stakeholder forum
within which negotiated outcomes
should be achieved.
■ Identify thoseat risk through vulnerability
or risk analysis and consider them as core
stakeholders, including those who face
risk to their livelihoods, human rights,
and property and resource rights. Special
attention should be given to indigenous
and tribal peoples, women and other
vulnerable groups as they may face
greater risks from development interven-
tions(Guideline3). In thecase of adam,
the analysis should include those up-
stream, downstream and in the proposed
reservoir area. Relevant civil society
groups or scientists are included in a
stakeholder forum to ensure that environ-
mental risks, for which there may be no
champion, are adequately reflected and
discussed.
■ / dentify constraints to establishing a level
playing field for stakeholder involvement.
The use of capacity building, institution-
al strengthening, quota systems (for
example, to ensure proper representation
of vulnerable groups such as women), or
support mechanisms, such asNGOsor
independent facilitators to correct any
imbalance of influence should be ex-
plored. Financial support may be neces-
sary to ensure adequate participation.
The government planning body sponsoring
the planned interventions is responsible for
initiating the stakeholder analysis leading to
constitution of a forum and will participate
in it. T he final structure and composition of
a stakeholder forum should be decided in a
consultative process. T he assistance of
independent facilitators may be helpful in
achieving this outcome.
A stakeholder forum is therefore formed of
individuals representing various groups and
The Report of the World Commission on Dams
279
Chapter 9
interests. Such structures may exist already
and their capacity can be strengthened or
modified. W here such structures do not exist,
a stal<eholder forum is established as the
representative body of the stakeholders. T he
extent to which a stakeholder forum should be
formalised to enable representation for the
groups identified through a rights-and-risks
approach will depend on country contexts.
T he status of a forum, and the selection of its
representatives, should however ensure
effective participation for all interested and
affected parties and accommodate changes
overtime.
Effective participation in a stakeholder
forum must be facilitated through timely
access to information and legal and other
necessary support. T his is particularly the
case with indigenous and tribal peoples,
women, and other vulnerable groups.
Sufficient time must also be allowed for the
wider body of stakeholders to examine
information and to consult amongst them-
selves before decisions are made. W here
dispute resolution mechanisms are required
for negotiated processes, see G uideline 2.
2. Negotiated Decision-
Making Processes
A negotiation process isone in which stake-
holders - identified through the Stakeholder
A nalysis (see G uideline 1) - have an equal
opportunity to influence decisions. N egotia-
tions should result in demonstrable public
acceptance of binding and implementable
agreements and in the necessary institution-
al arrangements for monitoring compliance
and redressing grievances. A II stakeholder
forum members should share a genuine
desire to find an equitable solution and
agree to be bound by the consensus reached.
Attributes of a fair negotiation
process
■ TheR epresentation of 5tal<eliolders i n th e
stakeholder forum is assured through a
free process of selection, ensuring the
effective and legitimate representation of
all interests.
■ The I ntegrity of C ommunity P rocesses
should be guaranteed through assurances
that they will not be divided or coerced,
recognising that differences and internal
conflicts may arise. T he process and the
stakeholders should be as free as possible
from external manipulation. Communi-
ties may legitimately decide to discontin-
ue their involvement in the process if
their human rights are not respected or
in the event of intimidation.
■ A dequate t/me is allowed for stakeholders
to assess, consult and participate.
■ Special Provisions for P rior I nformed
Consent. In negotiations involving
indigenous and tribal peoples, mecha-
nisms to resolve disputes should follow
procedures recommended by the C om-
mission (Chapter 8, Strategic Priority 1.4
and G uideline 3).
■ A ddressing Power I mbalances. A uthorities
should make available adequate financial
resources to enable stakeholder groups
who are politically or financially weak,
or who lack technical expertise or
organised representation to participate
effectively in the process. T hese resourc-
es may include financial support to
representatives for logistics, for income
foregone, for capacity building and for
requesting specific technical advice.
280
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
guarantee access to all relevant informa-
tion to the stakeholder forum in an
appropriate language; and
at the outset, agree on the t/meframe for
the key milestones within the decision-
making process.
■ Transparency IS ensured by jomtly defm- ■
ing criteria for public access to informa-
tion, translation of key documents and
by holding discussions in a language ,
local people can understand.
■ N egotiations are assisted by a facilitator or
mediator, where stakeholders request it,
selected with the agreement of the C
stakeholders. w
For this to be a legitimate process, the stake-
holders should:
■ agree on the appropriate structures and
processesfor decision-making the required
mechanisms for dispute resolution ( i ncl uding
any third party involvement), and the cir-
cumstances in which they will be initiated;
■ agree that the interests at stake and
legitimate community needs are clearly
identified, in particular on the basis of
relevant rights and risks;
■ ensure that the available alternatives,
their relevant consequences and uncer-
tainties are given full consideration;
ompliance with the process outlined above
ill be a fundamental consideration in
determining whether the negotiations
process was conducted in good faith.
W hen a negotiated consensus cannot be
ac/];evecf through good faith negotiations
within the agreed-upon timeframe, the
established independent dispute resolution
mechanisms are initiated. These may
include amicable dispute resolution, media-
tion, conciliation and/or arbitration. It is
important that these are agreed upon by the
stakeholder forum at the outset. W here a
settlement does not emerge, the State will
act as the final arbitrator, subject to judicial
review.
3. Free, Prior and
Informed Consent
Free, prior and informed consent (PIC) of
indigenous and tribal peoples is conceived as
more than a one-time contractual event - it
involves a continuous, iterative process of
communication and negotiation spanning
the entire planning and project cycles (see
C hapter 8, policy principle 1.4). Progress to
each stage in the cycle - options assessment
including priority setting and selection of
preferred options, and preparation, imple-
mentation and operation of the selected
option - should be guided by the agreement
of the potentially affected indigenous and
tribal peoples.^
I ndi genous and tri bal peopi es are not
homogeneous entities PIC should be
broadly representative and i ncl usive. T he
manner of expresi ng consent wi 1 1 be gui ded
by customary I avjs and practi ces of the
i ndi genous and tri bal peopI es and by nati on-
al \a\NS. Effective participation requires an
appropri ate choi ce of commun i ty represent-
ati ves and a process of di scussi on and
negotiation within the community that runs
parallel to the discuss! on and negotiation
between the community and external actors
Atthebegnningof theproceSi the indige-
nous and tribal peoples will tell thestake-
hol der forum how they wi 1 1 express thei r
consent to decisions i ncl udi ng endorsement
of key deci si ons ( G ui del i ne 1) .
The Report of the World Commission on Dams
281
Chapter 9
A n independent dispute resolution meclia-
nism to arrive at a mutually acceptable
agreement should be established with the
participation and agreement of the stake-
holder forum, including the indigenous and
tribal peoples, at the beginning of any
process. It is inappropriate to set rigid
guidelines or frameworks, as these must be
negotiated as the process proceeds. The
outline presented in Guideline 2.- Ne^tiated
D ecision M aking Processes is intended to offer
some basic direction to those involved with
such processes and independent dispute
resolution bodies.
Comprehensive Options Assessment
4. Strategic Impact
Assessment for
Environmental, Social,
Health and Cultural
Heritage Issues
strategic impact assessment (SA ) is a
relatively recent tool that can be used to
provide a new direction to planning process-
es. It provides an entry point that defines
who is involved and maps out the broad
issues to be considered. T he C ommission
proposes that the SA process starts by recog-
nising the rights to be accommodated, assess-
ing the nature and magnitude of risks to the
environment and affected stakeholder
groups, and determining the opportunities
offered to these groups by different develop-
ment options (G uideline 1). It should also
identify where conflicts between various
rights exist and require mediation.
SA takes the concept of project level impact
assessment and moves it up into the initial
phases of planning and options assessment.
It is a broad assessment covering entire
sectors, policies and programmes, and
ensures that environmental, social, health
and cultural implications of all options are
considered at an early stage in planning. It is
a generic term that includes a range of
planning tools for example, sectoral envi-
ronmental assessments (EA ), basin-wide
EA s, regional EA s, and cumulative EA s.^
SA should be concerned with the uses and
i mparts of exi sti ng water and energy
projects as well as alternatives for meeting
future needs I n prartice, SA may have
di fferent I e/d s of detai I , dependi ng on
where it isapplied. At onele/d, theSA
would scan and identify priority issues to be
addressed subsequently i n rrore detai led
planning exerdss For example, theSA
woul d i denti fy whether e/al uati ons of
existing projects have been undertaken, or
whether outstandi ng soci al i ssues on sped fi c
projects had been addressed. At this le/d,
theSA v\ould also asses whether a suffi-
ci ent range and type of opti ons are bd ng
considered in the different planning process-
es to meet future needs I n cases where the
SA i s more d aborate and detai I ed, the
exercise may be extended to host a generic
opti ons assessment process usi ng stakehol der
groups and nxiiti -criteria formulations to
screen and rank opti ons (G ui dd i ne 6) .
T he general goal s of SA i ncl ude
■ recognising the rights of stakeholders
and assessing the risks;
■ incorporating environmental and social
criteria in thesdection of demand and
supply options and projects before major
282
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
funds to investigate individual projects
are committed;
screening out inappropriate or unaccept-
able projects at an early stage;
reducing up-front planning and prepara-
tion costs for private investors and
minimising the risk that projects en-
counter serious opposition due to envi-
ronmental and social considerations; and
providing an opportunity to look at the
option of improving the performance of
existing dams and other assets from
economic, technical, social and environ-
mental perspectives.
SA must be revisited at appropriate intervals
with periodic 'state-of-the-sector reporting.
I mportant variables determining the frequency
and intensity of this on-going process include
developments in the economy in technology
in demography and in public opinion. Review
ofSA reports at the highest political level (for
example Parliament) is desirable.
5. Project-Level Impact
Assessment for
Environmental, Social,
Health and Cultural
Heritage Issues
Project-level impact assessment (lA ) is
already standard practice in many countries,
and the term is used hereto include envi-
ronmental, social, health and cultural
impacts. Deficiencies in past implementa-
tion have been identified and improved
processes are needed.^
T he fol I owi ng changes are proposed to the
way project I e/d I As are implemented:
■ Projects should be subject to a two-stage
lA : the first is a scoping phase, including
full public participation, that identifies
key issues of concern and defines the
terms of reference for the second, assess-
ment, phase (G uideline 1).
■ ThetimingofthelA should allow the
results to feed into the final design of the
project. There should be a total integra-
tion of technical, environmental and
social studies during the design stage.
A Ithough executed by different study
groups, these studies should run concur-
rently and interactively with regular
exchange of information between all
study groups.
■ I A s should be carried out independently
of the interests of the project developer
and financing mechanisms should reflect
this independence.
■ lA should include an Environmental
I mpact A ssessment, a Social I mpact
A ssessment, a H ealth I mpact A ssessment
(see Box 9.1), and C ultural H eritage
Impact A ssessment (see Box 9.2) as
explicit components and comply with
international professional standards. The
assessments should be sufficiently de-
tailed to provide a pre-project baseline
against which post-project monitoring
results can be compared.
■ An independent panel of experts (re-
porting formally to the highest environ-
mental protection authority) should be
appointed to assist the government and
the developer in reaching sustainable
social and environmental outcomes
(Guideline 22). The developer must
respond to all issues raised by the panel
and explain how they will be addressed.
The panel's findings and the developer's
response are to be made public within a
The Report of the World Commission on Dams
283
Chapter 9
reasonable period (for example, six
weel<s) .
■ Developers should open a local liaison
office to ensure adequate access to
information for local affected communi-
ties in appropriate languages.
■ The I A process should culminate in a
series of written agreements with those
departments or organisations that are
required to implement mitigation,
development and compensation plans, or
respond to the impacts. The scope of
these agreements must be fully defined
prior to tendering for construction.
Box 9.1: Health impact assessment
A health impact is a change in health risk reasonably attnbutable to
a project, programme or policy. A health risk is the likelihood of a
health hazard or opportunity affecting a particular community at a
particular time. Health Impact Assessment (HIA) is part of the
overall risk assessment process (economic, social and environmental
risks) to assess the viability of a project.
The Health Impact Assessment has the following components.
■ Assessing the health condition of people in reservoir infra-
structure, downstream, resettlement, irrigation, and other
impact areas. The assessment process should engage local
people and resources. The parameters denved from the
information collected constitute the baseline health situation
of the population.
■ Predicting changes in health determinants that can be
reasonably attributed to the project and that could affect
people during each stage of the project. The changes, taken
together produce health outcomes or changes in health
states. These are expressed in a minimum of three ranks: no
change, increased health nsk, and health enhancement.
Factors determining health outcomes in past projects involv-
ing comparable social, economic and environmental condi-
tions can be used to enhance predictability
■ Assessing the cost of preventing and mitigating the potential
health impacts in the overall cost assessment of the project.
■ Developing measures to prevent, minimise and mitigate
health impacts with the participation of the potentially
affected people and incorporating these into contractual
implementation arrangements with adequate financial
provision.
Source: WHO, 1999, WCD Working Paper
■ The lA process continues through and
beyond project construction and ade-
quate institutional and financial arrange-
ments for social and environmental audit
and monitoring should be included in
the planned measures. C ontracts with
monitoring agencies (for example research
institutesorNGOs) should be agreed prior
to tendering for construction.
■ A redress procedure should be put in
place that provides mechanisms for
addressing grievances during the resettle-
ment plan and following construction.
■ I A s should be public documents, posted
on relevant websites, and disseminated
in appropriate languages.
■ lA should be guided by the precautionary
approach.
T he precautionary approach requires States
and water development proponents to
exercise caution when information is
uncertain, unreliable, or inadequate and
when the negative impacts of actions on the
environment, human livelihoods, or health
are potentially irreversible. A precautionary
approach entails improving the information
base, performing risk analysis, establishing
precautionary thresholds of unacceptable
impacts and risk, and not taking actions
with severe or irreversible impacts until
adequate information is available or until
the risk or irreversibility can be reduced,
making outcomes more predictable. N or-
mally the burden of proof will be on the
developer.
Decision-makers are faced with the dilemma
of how to reconcile competing or conflicting
rights and needs. The precautionary ap-
proach forms part of a structured approach
to the analysis of risk, as well as being
relevant to risk management. Determining
what is an acceptable level of risk should be
undertaken through a collective political
284
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
process. T he process should avoid unwar-
ranted recourse to the precautionary ap-
proach when this can overly delay decision-
making. However, decision-makers faced
with scientific uncertainty and public
concerns have a duty to find answers as long
as the risks and irreversibility are considered
unacceptable by society.
6. M ulti-Criteria Analysis
M ulti-criteria analysis (M C A ) processes use a
mix of qualitative and quantitative criteria to
assess and compare options that may be
policies, programmes, or projects. Stakeholder-
driven MCA processes are flexible and open,
based on the concept of a stakeholder forum
(see G uideline 1). Their primary purpose is to
provide a structured process to screen and rank
alternatives and help understand and resolve
differences between groups of stakeholders
involved in development decisions.''
T he mul ti -di 9ci pi i nary pi ann i ng team wi th a
ti me- bounded mandate supports al I phass
of the M C A process. The resul ts at each
stage shoul d be made aval I abl e to the
stakeholder forum and for wider
public re/iew A public hearing
should be held on the outcome at
each stage if the significance of
the process vvarrants it. If the
MCA process can not resDl ve al I
confl i ctSi the use of M C A may
still asist in identifying policy
scenari os and the v\ay di fferent
gDups and i nterests perceive them
T here are many v\ays of presnti ng
the resul ts of the M C A . O ne of
them isthe preference nBtrix,
which demonstrates the equal
errphasi s g ven to sxi al , envi ron-
mental, technical and economic
parameters {see Figure 9.3) .
Box 9.2: Cultural heritage impact assessment
Cultural heritage resources are the cultural heritage of a people, a nation
or humanity as a whole, and can be on the surface, underwater or
underground. They compnse:
■ Cultural practices and resources of current populations - religions,
languages, ideas, social, political and economic organisations, and
their matenal expressions in the forms of sacred elements of natural
sites, or artefacts and buildings:
■ Landscapes resulting from cultural practices over histoncal and
prehistonc times; and
■ Archaeological resources, including artefacts, plant and animal
remains associated with human activities, bunal sites and architectural
elements.
Cultural Heritage Impact Assessment (CHIA) requires adequate time for
successful completion and should be looked at in two stages. Firstly
where regions and nver valleys are known to be nch in cultural resources,
landscapes, or archaeological resources, consideration of these elements
should be included in Strategic Impact Assessments (Guideline 4)and
used as a cntenon in selecting options and avoiding impacts. Secondly a
project level mitigation plan is developed where a dam option proceeds
to full feasibility phase.
The following procedural aspects need to be considered:
■ financial resources should be specifically allocated to CHIA;
■ the assessment team should include archaeologists and, if necessary
architects and anthropologists:
■ where cultural assets have significant spintual or religious significance all
activities should be planned with the consent of relevant communities:
■ assessments should culminate in a mitigation plan to address the
cultural hentage issues identified through minimising impacts, or
through curation, preservation, relocation, collection or recording: and
■ a separate report should be produced as a component of the overall lA
process.
Source: Brandt and Fekn, 2000, WCD Working Paper
I
Figure 9.3 Preference matrix for ranking options
High
2
u
c
o
u
l/l
M—
"to
"u
o
D_
l/l
la
"to
"u
4-1
So
nen
and
ronr
113
4-1
nvi
LU
01
01
E
4-1
"l/l
e
o
Q.
■>
E
o
LU
y
' 1 \
1 1
1 1
1 1
1 1
1 1
1 1
1 1
50
Low
Technical Preference
(Composite Technical/Economic Score)
100
— ►
High
The Report of the World Commission on Dams
285
Chapter 9
Attributes and stepsof MCA processes to
select the best mix of options are:
Step 1:
The sponsoring agency prepares terms of
reference for the overall process and a stake-
holder analysis, and establishes an information
centre. Representative stakeholder groups are
contacted, and the general public is informed
through print and electronic media.
Step 2:
A stakeholder forum is formed and repre-
sentatives of stakeholder groups identified
subject to public review and comment. A
multi-disciplinary planning team isformed
to support the process and assembles an
initial inventory of options.
Step 3:
Public comment is invited on the options
inventory including proposals for additional
optionsto be considered. The stakeholder
forum confirms the comprehensiveness and
adequacy of the options inventory W here
necessary additional steps are taken to
expand the inventory.
Step 4:
The stakeholder forum decides on the criteria
for screening the options and criteria for
coarse and fine ranking of options are estab-
lished with input from the planning team.
Step 5:
0 ptions are screened by the planning team
according to the agreed criteria, results are
presented to representatives of the stakeholder
group for approval and subsequently an-
nounced for wider public review or comment.
Step 6:
Sequential steps of coarse and fine ranking
of options (where the number of options is
large) are prepared by the planning team
and submitted to the representatives of the
stakeholder forum at each stage. T he list of
options at each stage is made public and an
adequate period for comment is provided
between each stage. Public hearings may be
held at each stage if appropriate.
Step 7:
The final selection of options that would
form the basis for detailed planning is
presented to agencies, communities, or
groups responsible for the detailed planning.
These steps lead to preparation of a limited
set of diverse development plans comprising
a range of options emerging from the
screening process. T he multi-criteria exer-
cise may be repeated to evaluate these
alternative plans and select a preferred
development plan.
7. Life-Cycle Assessment
Life-cycle assessment (LC A ) is an options
assessment procedure used in the energy
sector to compare 'cradle-to-grave' perform-
ance, environmental impacts, and market
barriers and incentives for different demand
and supply options. LCA is located at the
front end of the planning cycle. Its results
may be fed into multi-criteria screening and
ranking processes, which are a basis for
deciding which optionsto include in
subsequent stages of planning. A Iternatively,
the information generated by LCA is used
to develop regulatory policies, for example
policies addressing barriers limiting the
market penetration of options otherwise
considered to be in the interest of society^
LCA assessments can be simple and generic
or exhaustively detailed, data- rich, and
elaborate. LCA procedures that quantify the
286
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
potential impacts of different options on
land, air and water resources, including
greenhouse gas (G H G ) emissions, can be
transferred and adapted to different
countries. The analytical framework used to
assess the direct, indirect, and hidden
incentives and market barriers for different
options through the full chain of
development is also transferable.
LCA would typically include:
■ categorisation of the different stages in
the life cycle of each option where the
impacts and effects are relevant (for
example from resource extraction
through transport, manufacturing,
building, operation and refurbishment to
decommissioning);
■ identification of the material flows and
resource impacts at each stage and
comparison of each option using a set of
indicators (for example net efficiencies,
the consumption of resources, or the
impact per unit of output of the option -
such as land use, water use, G H G emis-
sions, and other gaseous, liquid or solid
pollution streams); and
■ identification of the range and magni-
tude of the direct, indirect, and hidden
subsidies, external factors and incentives
across each stage of the life cycle of each
option.
The most advanced use of LCA is in the
power sector, where it is particularly used
to consider the G H G emissions of various
options. T hese factors are becoming the
prime driving force behind energy and
power sector policies in many countries
including Europe, A ustralia and C anada,
and reflect the Kyoto Protocol (G uideline
8).
8. Greenhouse Gas
Emissions
Recent research indicates that reservoirs can
emit greenhouse gases. Precise assessments
are especially important to assist in selecting
climate-friendly options and if hydropower
projects seek to benefit from any form of
carbon credit. T he emissions from the
natural pre-impoundment state should be
included in the comparison with other
options. G ood field studies with modelling
predictions of emissions should be an
explicit component of relevant feasibility
studies.^
P rocedures to cal cul ate emi sa ons for con-
ventional and renev\able options are v\el I
established and available but are continually
evolvi ng. A n expert v«)rkshop convened by
theCommission and held in Montreal in
February 2000 decided that net emissions
from reffirvoi rs above basel i ne emi ssi ons are
the appropriate esti mates To calculate net
emissions the planner nxBt:
■ assessthe carbon (COj, CH,) and
nitrogen cycles (NjO) in the pre-im-
poundment watershed context - this
involves establishing a carbon budget,
including description of flow rates,
concentrations, residence time and other
relevant measures;
■ assess future changes to carbon inputs in
the watershed from various activities,
including deforestation;
■ assess the characteristics of proposed
reservoir(s) and inundated area(s) that
will change the carbon cycle, including
size, temperature, bathymetry, primary
productivity and other relevant measures
after dam completion; and
The Report of the World Commission on Dams
287
Chapter 9
■ assess the cumulative emissions from
multiple dams on a watershed basis in
cases where a dam and its operations are
linked to other dams.
M ore baseline measurements are required on
reservoirs on existing projects to extend
understanding of the scale of G H G emis-
sions to temperate and semi-arid regions of
the world and to catchments with large
urban populations. Such data will prove
helpful in taking informed decisions on
energy options and climate change.
9. Distributional Analysis
of Projects
D istributional analysis provides stakeholders
and decision-makers with information on
who will gain and lose from a project and is
an essential tool in promoting more equita-
ble distribution of benefits and costs.^ These
gal ns and losses may be expressed i n eco-
nomi c or f i nanci al termSi or they may be
rrore si mplyexpresKJ as changes in physical
quantities I n SDme cass only the di radii on of
a specific impact be discernible.
Integrated distributional analysis requires
assessment of the ful I range of proj ect
i mpacts i ncl udi ng fi nanci al , soci al , envi ron-
mental and economic aspects assssed either
in a qualitative fashion, quantified in non-
monetary termSi or valued in financial or
economic terms. A number of methods
focusing on specific aspects of distribution
can be used withi n the overal I approach at
different stages of the planni ng cycle.
■ Equity (or poveri:y) assessment comprises
an assessment of the impacts (in economic
or non-economic terms) and risks of a
project on specific sub-populations or
groups of concern.
■ M acroeconomic or regional analysis
includes an analysis of the wider economic
impacts using either a simple economic or
fiscal impact analysis or a formal regional
or macroeconomic model.
■ Economic distributional analysis includes
an explicit analysis of distribution of the
direct costs and benefits of the project,
including those external social and envi-
ronmental impacts that are to be valued
(Guideline 10). This builds on the finan-
cial and economic cost-benefit analyses.
Selecting options: Integrated distributional
analysis at a preliminary level should be
initiated during the eariy stages of screening
and selecting options as part of the strategic
impact assessment. It can be carried forward
at an increasing level of detail for projects
that emerge for further consideration from
this process. A t the preliminary level of
analysis, a matrix is prepared to identify the
groups that will either receive benefits or
bear the costs of the project and indicate the
approximate scale of such costs or benefits.
A qualitative equity assessment should also
be undertaken and inform the screening
process about the comparative impacts of
alternatives on vulnerable groups in society.
Feasibility stage: A more detailed and inte-
grated distributional analysis should be
undertaken during the feasibility study and
include both an economic distribution
analysis and equity assessment. T he use of a
macroeconomic or regional analysis is
recommended for projects with a significant
irrigation component or inter-basin transfer
where there are broader objectives in terms
of redistributing income between regions or
making a sustained contribution to the
macroeconomy. T he distributional analysis
should be undertaken in full consultation
with project stakeholders.
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Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
10. Valuation of Social and
Environmental Innpacts
The methodologies and applications to
value environmental and social impacts of
dams can be used to ensure that impacts are
internalised in the economic analysis where
appropriate and possible (see Table 9.1).
W here it is undesirable or not possible to
express such impacts in economic terms,
they should be considered separately as
parameters in the multi-criteria analysis (see
G uideline6).
Expertise and experience with these meth-
ods in industrialised countries are wide-
spread, and many examples exist of their
application to the impacts of dams.^ Typi-
cal I y, val uati on of the i mpacts of new dams
or the decommi sa on i ng of ol d dams i n such
countries deals with recreation, tourism,
fisheries and, increasin^y people's prefer-
ence for healthy ecosystems.
A range of methods i s aval I abl e, i ncl udi ng
those based on observed market behaviour,
the stated preferences of individuals or
model I i ng of Choi ces made by respondents
i n market surveys T hei r purpose i s to val ue
previously hidden costs and benefits and
make them expl i ci t i n deci si on- meki ng.
Whatever the context, the derivation of
monetary val ues for the un mi ti gated envi -
ron mental and social impacts of projects is
necesary when it assists the transparent,
participatory and explicit examination of
project and policy alternatives Whether
these include the val uati on of cultural,
bi odi versi ty or other i ntangi bl e val ues i n
monetary terms wi 1 1 depend on the I ocal
context and on stakeholders: views As
noted, such aspects are often better ad-
dressd as an i ndi vi dual I y wei ^ted compo-
nent in a nxilti-criteria analysis
M any of these val uati on methods are
equal I y appi i cabi e i n the devd opi ng worl d
and capacity to apply them increaad rapidly
i n the 1990s T hey have been adapted to
the rural, de/doping context, particularly in
combi ni ng parti ci patory approaches with
val uati on methods and i ntegrati ng econom-
ic valuation into nxilti-criteria analysis
M any of the external i mpacts of I arge dams
affect household livdihoodsand thus should
be assessed usi ng rdativdy straightforward
market or re/ealed- preference methods I n
parti cul an a seri es of rd ati vd y strai ^tfor-
v\ard methods such as productivity and
substitute-goods methods may be appI led to
esti mate how changes i n v\ater quantity
qual i ty and fl ow regi me affect househol d
productivity and consumption. These
methods also apply to the i mpact of changes
in v\ater flows on downstream communities
and the r natural resDurces as wd I as i mpacts
on n^j or eco^em flincti ons and sesv\ ces
where these provi de an econoni c good. For
exampi e ment fl ows and deposi ti on al ong
the coast, whi ch i f i nterrupted, way I ead to a
need for erosion control measures
Studi es of th i s nature shoul d i nvol ve at I east
three steps
■ a scoping exercise to identify and sdect
impacts to be valued;
■ valuation studies; and
Table 9.1: Valuation methods
Observed Behaviour
H ypotlietical Beliaviour
D irect
M arket Prices
Stated Preferences
Competetive market prices
Shadow pricing
Contingent valuation
(dichotomous) choice,
willingness-to-pay, bidding games
1 ndirect
Revealed Preferences
Clioice Modelling
Productivity methods
A vertive (defensive) expenditure
Travel cost
H edonic pricing
Substitute goods
Contingent referendum
Contingent ranl<ing
Contingent behaviour
Contingent rating
Pairwise comparisons
Source: Freeman, 1993; Pearce, pars. comm. 2000; Barbier, pers. comm. 2000.
The Report of the World Commission on Dams
289
Chapter 9
■ public meetings to report back to the
stal<eholder forum on the results of the
studies.
The scoping exercise may be incorporated into
the initial stage of project impact assessment
(see Guideline 5). Finally, the information
generated through valuation studies should
have an explicit role in informing not only
applicable cost-benefit and distributional
analyses, but also the negotiations between
stakeholders and decision-makers.
11. Improving Economic
Risl< Assessment
All infrastructure projects and commercial
undertakings involve risk, uncertainty and
irreversibility Project risk assessments
generally take into account technical,
economic and financial aspects.^ The
Commisaon recogiisesthe nature of social
and envi ron mental risks and that these can
be addresed through other mechanisms
(Guidelines 4, 5, 18).
T he fol I owl ng are recommended as a general
approach for technical, financial and
economic risk assessment:
■ the assessment of risks should be includ-
ed in all steps of the planning cycle;
■ identification and selection of risks for
assessment should be undertaken as part
of the larger stakeholder and multi-
criteria processes;
■ past performance of large dams should be
used to identify likely ranges for the
variables and values to be included in
risk and sensitivity analysis; and
■ sensitivity analysis should be complement-
ed by a full probabilistic risk analysis.
G ood practice involves the use of probabil-
istic risk analysis, a quantitative technique
that employs the probability distributions of
individual variables to produce a consolidat-
ed single probability distribution for the
criteria of interest.
For example, in determining economic risk,
the probabilities of different values for
inflows and power generation can be com-
bined with probabilities of cost overruns in a
cost-benefit analysis to result in a probabili-
ty distribution of net returns. This provides
a robust assessment of the risk of different
outcomes(see Box 9.3). It introducesa
more effective approach than the simple
sensitivity analysis used to assess the effect
of potential changes in important variables
where the cost-benefit analysis may have
been re-run for a number of individual
scenarios. For example, the sensitivity
analysis is used to see whether the project is
still profitable when the planned project
costs increase by 20%.
In implementing these general recommen-
dations on economic risk analysis across the
planning cycle, a number of specific sugges-
tions should be considered.
At all stages:
■ improved prediction of project costs by
using a frequency distribution of the cost
overruns for similar projects.
A t options assessment stage:
■ a simple sensitivity analysis using agreed
value ranges for key variables; and
■ a qualitative comparison of options
under consideration in terms of the
uncertainty associated with the cost and
benefit streams of each project.
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Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
At the feasibility stage
■ a full probabilistic risk analysis of eco-
nomic profitability;
■ modelling of changes and variability in
hydrological estimates that may result
from climate change and their effect on
delivery of services and benefit flows;
and
■ investigation ofthelikely benefits of risk
reduction measures and the costs this
entails.
Box 9.3: Ghazi-Barotha, Pakistan
The World Bank appraisal of the Ghazi-Barotha hydroelectric project in
Pakistan used a probabilistic risk assessment of the economic rate of
return (EIRR)of the power expansion programme, with the risks
summansed underfour scenarios: demand uncertainties, cost profiles,
schedule delay, and amount of additional capacity provided by pnvate
projects. Each scenano has three alternative states. Probabilities were
assigned to each scenario so that a weighted average BIRR could be
obtained. This yielded 54 total possible outcomes. For each one the
expected value of the EIRR, calculated as probability times its own
EIRR, is then summed overall outcomes to give the expected EIRR. A
probability distnbution of EIRR was then calculated forthe overall
power sector programme and for the project alone.
The results indicate that the risk-weighted EIRR on the overall invest-
ment programme is 18.5%. This is lower than the Base Case estimate,
but considerably higher than the opportunity cost of capital at 12%,
The probability of the EIRR falling below the opportunity cost of capital
is estimated at 8%. The risk-weighted EIRR proved quite robust to
changes in the basic probabilities.
Source: World Bank, 1995.
Addressing Existing Dams
12. Ensuring Operating
Rules Reflect Social and
Environmental
Concerns
A greements on operating conditions should
reflect commitments to social and environ-
mental objectives in addition to the com-
mercial interests. At all times the safety and
well beingof the people affected must be
guaranteed throughout the project cycle. A II
operating agreements should be available to
stakeholder groups.
River diversion during construction
Emergency warning and evacuation plans
are needed in the event of overtopping of
temporary diversion works. Licence condi-
tions should assign responsibility for com-
pensation to the downstream population for
any damages that occur during such events.
The compensation would be limited to
those impacts caused by the breach, over
and above the natural flood event.
Releases to the downstream river to satisfy
drinking water and environmental require-
ments should be maintained during river
diversion. If, for technical reasons, flow is
interrupted, the operator must guarantee
that alternative supplies of drinking water
will be made available to the downstream
population.
Reservoir filling
During the reservoir filling period, there
should be releases of good quality water to
the downstream river to satisfy drinking
water, irrigation, and environmental re-
quirements. If the water quality is expected
to be poor, then - as with the agreement on
river diversion - alternative supplies of
The Report of the World Commission on Dams
291
Chapter 9
drinking water must be made available for
the downstream population.
Test operation
Test operation of the spillway (if gated), of
other outlet works, and of the turbines can
lead to major sudden releases to the down-
stream river, endangering human and
animal life. The operator will be responsible
for warning the downstream population that
sudden releases may occur and may be
dangerous. Local fishers will be compensated
for days when fishing is impossible. If test
operation takes place during the dry season,
people experiencing damage to recession
agriculture must be compensated.
Operation
A range of agreements on the operating
phase should be covered in the licence:
■ environmental flow releases to the
downstream river;
■ minimum technical releases to the
downstream river (for navigation, water
supply downstream irrigation and so on);
■ maximum ramp rates for downstream
releases (to avoid problems with naviga-
tion and damage to the river banks);
■ water allocations during normal operation;
■ operation during normal and exceptional
floods;
■ warning of people potentially affected
and rules for evacuation of people and
animals;
■ opening of spillway gates;
■ periodic safety inspection by independ-
ent parties;
■ drawdown procedure if dam safety is in
doubt;
■ monitoring of relevant operation data and
dissemination of data to stakeholders; and
■ periodic review of operating rules
13. Improving Reservoir
Operations
A range of project specific non-structural
and structural methods to adapt, modify,
improve, or expand operations of dams and
associated facilities may be considered at
different periods in time. Structural meas-
ures may include modernising equipment
and control systems and improving civil
structures such as spillways, intakes and
canals. Non-structural measures generally
involve a change in reservoir operation
practices to optimise benefits, cater to
changing water use priorities, enhance
conjunctive operation, or improve sediment
management. Dam safety improvement and
updating contingency plans for operation of
reservoirs in extreme flood events are other
aspects of adaptive management.^"
Detailed technical guidelines are avail able on
v\aysto change reavoi r operations either by
adapti ng exi sti ng njl e curves or i ntroduci ng
more mDdem computerisd decision support
^em^ i ncl udi ng real-ti we data i nputs
si mul ati ons and forecasti ng. I n adapti ng
reffirvoi r operati ons ownerg^operators shoul d :
■ work with stakeholders to collect views
on current reservoir operations and views
on the need, concerns, and limitations of
potential future changes in water release
patterns, including downstream impacts;
■ confirm any change in the priority of
water uses (such as environmental flows)
and evaluate the scope to use flow
forecasting to optimise reservoir opera-
tion (G uideline 15);
■ use simulation models where feasible, to
assess the scope for optimising the supply
of water and energy (for example timing.
292
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
quantity) into the system (for example
irrigation canal system and conjunctive use
of groundwater, power grid or water
distribution system) to improve the overall
value of the services in the system;
assess the ability to operate the reservoir
to optimise delivery of services using
computerised models;
assess the scope to further optimise
interactive operation of the reservoir
with other reservoirs, diversions or
facilities using basin-level decision
support systems;
provide clear responsibilities and proce-
dures for emergency warning and improved
preparedness of downstream countries,
operator training and downstream evacua-
tion in extreme flood events; and
ensure monitoring systems are in place and
feed into operational decision making.
Sediment management is one area where
increased attention is needed. A sediment
management plan would consist of:
■ monitoring sediment in the reservoir,
including quantitative and qualitative
analysis of sediment to verify properties
and pollution levels;
■ minimising sediment deposition in
reservoirs where possible by sluicing or
density current venting;
■ removing accumulated deposits where
possible by drawdown flushing (drawing
the water level down during high-flow
seasons), and excavation of sediments;
and
■ catchment management programmes to
reduce sediment inflow to the reservoir
where possible as part of a basin-wide
plan.
Sustaining Rivers and Livelilioocis
14. Baseline Ecosystem
Surveys
T he effectiveness of mitigation, enhance-
ment, compensation and monitoring meas-
ures require better baseline knowledge and
understanding of ecosystems. Baseline
assessments inform both the national policy
on maintaining rivers and requirements for
environmental flows and other compensa-
tion and mitigation measures. T hey are not
restricted simply to an 'impact statement',
but instead gather the necessary baseline
information prior to alternatives being
assessed."
T he basi i ne surveys ai m to estabi i sh the
link betv\een the hydrol og cal reg me of the
river and its associated eco^ems. Baseline
surveys should gather rde/ant information
on:
■ the life cycle of important fish species
(especially migratory species);
■ the distribution of habitat for threatened
or endangered species;
■ important areas for biodiversity; and
■ key natural resources for riverine com-
munities.
The studies should explicitly identify where
modifications to flow or water quality will
have significant impacts on biodiversity
habitats, or riverine communities and
provide the scientific basis for testing flow
and quality scenarios against ecosystem
The Report of the World Commission on Dams
293
Chapter 9
responses (G uideline 15). Such studies
would normally be undertaken over several
seasonal cycles.
A ppropriate research agencies staffed with
specialised scientists should undertake
baseline surveys, assisted where necessary by
international networks. Enhanced local and
regional capacity will help identify under-
stand and manage environmental impacts,
hence improving environmental outcomes
for current and future dams.
15. Environmental Flow
Assessments
Dams should provide for an environmental
flow release to meet specific downstream
ecosystem and livelihood objectives identi-
fied through scientific and participatory
processes. I n some cases managed floods may
be necessary to maintain downstream
floodplainsand deltas. Several approaches
are available for assessing environmental
flow requirements (EFR), ranging from
'instream flows', which refer to within-bank
flows, to 'managed flood releases' designed
to overtop and supply floodplains and deltas.
'Environmental flow' includes all of these and
stresses the need to meet clear downstream
social and ecosystem objectives rather than
simply releasing a quantity of water.
Environmental flow assessments (E FA) can
be done at several I evd s of detai I , from a
si mpl e statement of vvater depth to provi de
v\etted habitat for a particular fish species to
a comprehensive descri ption of a flow
regime with intra-annual and inter-annial
vari abi I i ty of I ow fl ovjs and f I oods i n order
to mei ntai n complex river eco^ems.
Confidence in the suitability of an EFA to
meet its objective is I inked to the I e/d of
i nvestment i n appropri ate speci al i st i n puts
H ol i sti c methodol ogi es contri bute to a
detai I ed understandi ng of the meri ts and
drawbacks of a seri es of competi ng v\ater
resource opti ons i n terms of requi red ri ver
flow, water available for off-channel use, and
thesocial and economic implications.
Sophisticated habitat-modelling techniques
provide additional detailed information on
the flows required for specific valued river
species or features, where the targeted rivers
are of high conservation importance or have
a high likelihood of conflicts over water.
EFRsarean integral part of the impact
assessment process (see Box 9.4.). Continual
interaction with the design team is essential
to ensure that the least damaging and most
flexible options are retained and that the
dam design reflects the structural and
operational needs of the flow release.
T he Knowledge Base provides guidance on
the following steps to informed decision-
making leading from baseline surveys to
environmental flows'^ :
Step 1: Situation assessment
I dentify the extent of the targeted river
system likely to be affected by a dam -
upstream, downstream, and in the reservoir
basin - and alert decision-makers to the
likely ecological and social issues that will
need to be addressed. T his draws on data in
the baseline surveys, where these exist.
Step 2: Specialist surveys and
identification of ecosystem
components
A range of specialists (ecologist, geomor-
phologist, sociologist, and resource econo-
mist) undertakes field surveys to provide a
comprehensive description of the affected
294
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
river. The studies linl< flow-related informa-
tion with ecological and social values.
Step 3: Developing predictive
capacity on biophysical responses to
dam-related flow changes
T he team develops data sets, models and
various analytical toolsthat can be used in
scenario creation to assist decision-making
(Step 5). These may include, for instance,
specifying conditions needed for a certain
fish species to spawn, or how water quality
differs between the rising and falling arms of
a flood hydrograph, or how downstream
fisheries and pastures will be affected.
Step 4: Predicting social impacts of
the biophysical responses
T he present river use, exploitation of river-
related natural resources, and health profiles
of the affected people and their livestock are
quantified, and possible flow-related health
risks are identified.
Step 5: Creating scenarios
Scenarios are created that include social,
biophysical, and economic parameters and
present a series of future options for deci-
sion-makers. Scenarios may be defined by:
■ the volume of water required as yield from
the dam - the rest is allocated to the river;
■ protection of a valued species,
community or river feature, in which
case a flow regime to achieve this would
be described;
■ a definition of the priorities of the
competing users, and a description of the
resulting flow regime and its effect on
river condition; and
■ river rehabilitation downstream of an
existing dam, in which case the best that
can be achieved within the design
limitations of the dam is described.
In addition, the 'no development' scenario
should always be included.
Step 6: Selection and
implementation of one scenario
This requires:
■ reflection of the chosen scenario in the
dam design and the Environmental
M anagement Plan; and
■ monitoring of implementation to ensure
that objectives are met
Box 9.4: Design and cost of environmental flows - Pollan Dam,
Ireland
The E!A results forthe Pollan Dam showed that migratory salmon were
present upstream of the dam site, and thatthe dam would act as a
barnerto salmon movements, affecting the fishery. The environmental
water releases were designed to meet the seasonal needs of the
migratory fish. Design modifications had major implications for
structures such as the concrete dam, spillway and downstream
channel. The capital cost of all environmental protection measures is
estimated to have increased the total cost of the project by 30% (from
$6 million to $8 million). The flows have been effective in maintaining
the salmon population and the recreational fishery.
Source: Smith, 1996; Bridle, pers. comm. 2000
16. Maintaining Productive
Fislieries
T he impact of dams on fish and fisheries is
of major concern in many parts of the world.
Several issues need attention in order to
maintain productive fisheries (see also
Guideline 15)."
Fish passes should be tested and shown to be
efficient mitigation tools Fish pass design
has focused on the needs of leaping salmo-
nidsthat usually dominate fish communities
in fast-flowing rivers in the industrialised
northern countries. Yet many fish species in
slow-flowing tropical rivers are unable to use
this kind offish pass as they do not leap.
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Chapter 9
Box 9.5: Benefits of improving fisli passes
In 1976 a pool-and-weirtype fish pass was incorporated into a tidal
barrage on the Burnett River in SE Q ueensland, Australia. Assessment
of the fish pass in 1984 and 1994 showed it to be ineffective, with only
2 000 fish of 18 species ascending over a 32 month period. The fish
pass was modified to a vertical-slot design with low water velocity and
turbulence. 0 ver 17 months 52 000 fish of 34 species used the rede-
signed fish pass. N on-leaping fish are now able to use the fish pass,
benefiting the entire fishing community on the nver
Source: Flanders, 1999; env219, WCD Submission
W here fish passes exist, their effectiveness
should be measured and their design im-
proved where efficiency is low. For new
dams, proposed fish pass designs should be
tested hydraulically and their appropriate-
ness for the target species explicitly assessed.
(See Box 9.5.)
W here the reservoir fishery will be assessed
as a project benefit, the proposal should
explicitly include regional experience of
similar reservoir fisheries, rigorous assess-
ments of potential reservoir productivity,
and proposals for the institutional mecha-
nismsto manage the new fishery. Relevant
contracts should be established between the
project proponent, the agencies responsible
for developing or managing the reservoir
fishery, and the fishers, with priority given
to affected people. Fisheries management
objectives for dams include:
■ preventing the loss of endangered and/or
commercially important fish biodiversity;
■ maintaining fish stock abundance;
■ ensuring the long-term sustainability of
the catch, employment and income; and
■ producing fish for local consumption and
exportable fish products.
Reservoir fisheries management concerns
focus on protecting spawning grounds in
affluent inflow areas, stocking to increase
production (for example, of a small pelagic
fishery) and advice on management of the
water level to reduce impacts that harm fish
stocks. Downstream river fisheries manage-
ment focuses on aeration of anoxic dis-
charge water from the dam, provision of
effective fish passes, reduction of turbulence
in the stilling pool, and mitigation offish
losses on the downstream floodplain
through flow releases.
Recognising Entitlements and Sliaring Benefits
17. Baseline Social
Conditions
C onstructing a social baseline is central to
the planning and implementation process. It
provides key milestones against which
project performance and positive and
negative impacts on people can be assessed
through periodic monitoring and evalua-
tion. It is also a key input to strategic social
impact assessment (G uideline 4)."
Soci al basel i ne asffisanents shoul d be done
at tvjo stages i n the planni ng prcxress
■ a low-intensity appraisal during options
assessment, linked to Strategic Impact
A ssessment; and
■ a more comprehensive baseline during
Project-level Impact A ssessment once an
intervention emerges from the options
assessment process.
In light of the significance of the impacts
that can occur between the time a decision
is made to develop a project and its actual
implementation, the second baseline study
may need to be updated at the tender stage
296
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
of a project. Subsequent monitoring activi-
ties can follow standard practice.
Baseline studies should be undertaken for all
impact areas, and in particular the areas and
communities likely to be positively and
negatively affected by the project. G roups to
be considered include communities to be
displaced, prospective host communities,
downstream and upstream communities, and
command area inhabitants (irrigation
schemes, transmission line corridors, and
other infrastructure areas). The social
baseline study should be participatory and
involve discussion and feedback through
stakeholders (G uideline 1). It should also be
accessible to the general public.
Some of the common techniques used to
assess baseline social conditions combine
gender-sensitive household surveys, commu-
nity-level participatory appraisals, and other
methods such as key informants, oral
testimonies and preference assessment,
direct observations and literature review. For
the assessment of social processes, some of
the participatory appraisal methods (such as
the Venn diagram of institutional processes)
can be useful. A erial photos, satellite
imagery and geographic information systems
can be combined with participatory commu-
nity resource mapping exercises.
T he State is responsible for ensuring that
social baseline information is collected. The
task should be carried out by independent
institutions selected in consultation with
the stakeholder forum. Large projects should
be considered as an opportunity for building
local capacity (in relevant government
agencies, academic and research institu-
tions, and civil society organisations) to
undertake social assessment and monitoring.
18. Impoverishment Risk
Analysis
The impoverishment risks and reconstruc-
tion analysis model for resettling affected
and displaced populations adds substantially
to the tools used for explaining, diagnosing,
predicting, and planning for development.
This guideline should be read in conjunc-
tion with Guideline 4: Strategic I mpact
A ssessment, G uideline 5: Project- related
I mpact A ssessment and Guideline 17: Base-
line Social C onditions. A t the core of the
model are three fundamental concepts: risks,
impoverishment and reconstruction. Impov-
erishment risks are analysed by separating
out the components of the displacement
process. T hey are landlessness; joblessness;
homelessness; social, economic, and politi-
cal marginalisation; food insecurity; in-
creased morbidity and mortality; loss of
access to common property resources; and loss
of socio-cultural resilience through a commu-
nity's inability to secure its interests.!^
The internal logic of the nxdel suggests
that:
■ preventing or overcoming the pattern of
impoverishment requires risk reversal;
■ explicit identification of risks in advance
is crucial for planning counter-risk
measures; and
■ the transparent recognition of risks in
advance will allow planners and affected
people to search for alternatives to avoid
displacement or to respond with mitiga-
tion and development measures or
strategies and coping approaches.
The strategy to implement the impoverish-
ment risk model includes the following:
The Report of the World Commission on Dams
297
Chapter 9
■ the baseline study covering such aspects
as numbers of affected people, availabili-
ty and access to resources, sources of
livelihood and social, cultural, demo-
graphic, economic and political condi-
tions and processes (G uideline 17) -
these studies must incorporate variables
to construct key elements of the risk
model, in addition to collecting data on
other aspects;
■ the baseline study providing information
to understand how social, economic and
cultural networks, physical environment
and resources support the well-being of
individuals, households and communi-
ties; and
■ mitigation, development and benefit-
sharing measures to improve the liveli-
hoods and well-being of affected people,
and to provide the social and physical
environment that would enable individ-
uals, households and communities to
successfully overcome impoverishment
risks.
A four stage, two-generation model that
would enable affected communities to reach
full development includes":
■ developing benefit sharing, mitigation,
and development plans with the partici-
pation of the affected people;
■ enabling resettled people to cope and
adapt following displacement, with
continued support from the government
and civil society groups;
■ supporting economic development and
community building within resettlement
areas; and
■ hand over of resettlement sites and
incorporation within broader social and
political institutions at a stage when
resettlement and development plans are
fully realised and capable of sustaining
th e gal n s for future gen erati on s.
19. Implementation of the
Mitigation,
Resettlement and
Development Action
Plan
A mitigation, resettlement, and develop-
ment action plan (M RDA P) is negotiated
between all affected peoples, the govern-
ment and the developer. It generally has two
elements - a master contract and a perform-
ance contract." T he affected people v\ere
identified throu^ an I mpoverishment Risk
A nal ysi s ( G ui del i ne 18) . O ne component of
the M RDA P may be a Project Benefit-
Shari ng M echan i sm ( G ui del i ne 20) . T he
overal I obi i gati ons and responsi bi I i ti es of
the government and the de/doper wi 1 1 be
included in the Compliance PI an (Guide-
line 21).
A master contract ensures that the M RDA P
provi si ons and responsi bi I i ti es are cl earl y
understood and assigned, while a perfom>
ance contract formal i ses provi si ons and
commi tments wi th affected fami I i es and
communities These tv«) legally binding
contracts are found at the government and
devd oper I e/d and the affected persons and
commun i ty I e/d . W here govern ment
mi ni stri es or departments act as the de/d -
oper, there may not be a need for a master
contract, but thd r obi i gati ons i n this regard
should be clearly stated i n the M RDA P I n
such C3EES, they wi 1 1 enter i nto ag'eements
directly with affected people through
performance contracts
At the government and developer
level
The M RDA P should have legal status.
Countries with resettlement and rehabilita-
298
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
tion acts or policies should make suitable
amendments to ensure that contracts apply
to all affected communities including
downstream communities.
■ The master contract is concluded be-
tween the developer (public corpora-
tions, private, or joint) and the govern-
ment. In the contract, the developer
agrees to carry out all the actions set out
in the M RDA P in a timely manner. It
spec i f i es go V em m en t respo n si b i I i t i es f 0 r
providing support to acquire land, staff,
schools and so on.
■ A private sector developer should sign a
performance bond supported by financial
security (Guideline 23).
■ Where the government undertakes to
provide other services (including land
acquisition, road building and health
care), the responsible line ministry
enters into agreements with other
appropriate ministries to provide them.
The master contract:
■ specifies penalties, incentives, remedies,
and other measures to facilitate compli-
ance by the government and the devel-
oper;
■ provides for the establishment of a
mitigation and development office for
implementation purposes. This is usually
staffed by government officials drawn
from various ministries supported by staff
from the developer;
■ confirmsthe roleof a multi-stakeholder
committee as a subgroup designated by the
stakeholder forum (including senior
government officials, the developer, N G 0 s
and affected peoples groups) to deal with
grievances and supervise the work of the
mitigation and development office;
■ empowers the mitigation and develop-
ment office to monitor the implementa-
tion oftheMRDAP;
■ provides for continuous monitoring of
implementation by an independent field
monitoring team, selected with the
consent of the affected people and
reporting to the multi-stakeholder
committee;
■ confirms the composition and roleof a
panel of experts for the implementation
phase (G uideline 22), appointed by and
reporting to the multi-stakeholder
committee to assess whether the M R-
DAP is being implemented correctly
rehabilitation objectives are being
achieved and project benefits are being
provided to affected people; and
■ establishes a mechanism for dispute
resolution - the multi-stakeholder
committee is responsible for hearing
disputes and grievances related to
execution of the performance contract
where the mitigation and development
office has been unable to resolve issues.
If the committee cannot resolve the
dispute or grievance, the matter will be
referred to the appropriate judicial body.
At the community and affected
persons level
Based on the provisions of the master con-
tract, performance contracts are agreed with
the community and affected persons detailing:
■ compensation, resettlement, and devel-
opment entitlements;
■ schedule and method of delivery;
■ institutional arrangements to deliver the
commitments;
■ obligations and responsibilities of the
parties in the contract, namely affected
peoples, community, government and
developer; and
■ recourse procedures.
The master and performance contracts have
to be agreed at the project feasibility stage
The Report of the World Commission on Dams
299
Chapter 9
and signed prior to tendering tlie construc-
tion contract. T he signing of the perform-
ance contracts by the affected persons and
communities signals their consent for
project implementation. The multi-stake-
holder committee addresses all disputes
related to performance contracts.
20. Project Benefit-Sharing
jvjeciianisnns
A dversely affected people are entitled to
share in project benefits. Beneficiaries and
benefits need to be identified and will form
part of the M itigation, Resettlement and
Development A ction Plan (see Guideline
19) . T he nature of agreed benefits can take
many different forms.
Type of project benefits
P roject Revenues-Related: A percentage share
of project revenues/royalties, the construc-
tion budget and other profits. A joint
enterprise with affected people having a
share of equity.
Project Benefit-Related: Provision of irrigated
land or an opportunity to purchase irrigated
land, access to irrigation water, provision of
electricity supply, domestic water supply
from the project as appropriate. Right to
reservoir fisheries, cultivation in the draw-
down area of the reservoir, and contract to
manage recreational/water transport facilities.
Project C onstruction and 0 peration-R elated:
Employment in construction, plant opera-
tion, and service sector of the project.
Financial and training support for self-
employment contract to provide goods and
services.
Resource- Related: Preferential access to, or
custodianship of, catchment resources for
defined exploitation and management
purposes, catchment development such as
planting fruit trees or reforestation, access to
pumped irrigation from the reservoir, and
benefits from managed flows and floods.
C ommunity Services-Related: Provision of
better and higher levels of service including
health, education, roads and public trans-
port, and drainage; income support for
vulnerable or needy households; agricultural
support services including preferential
planting materials and other inputs; commu-
nity forests and grazing areas; market and
meeting spaces.
H ousehold-Related: Skills training and
interim family support; interest-free loans
for economic activities, housing improve-
ments, provision of start-up livestock, access
to public works or work for wages, free or
subsidised labour-saving devices or productive
machinery, access to preferential electricity
rates, tax rates, water and service charges.
Identification, assessment, and
delivery of benefits
Definition of Beneficiaries: Beneficiaries
include all people in the reservoir, upstream,
downstream, and in catchment areas whose
properties, livelihoods, and non-material
resources are affected; and also those affect-
ed by dam-related infrastructure such as
canals, transmission lines, resettlement, and
other factors.
Identification of Beneficiaries: Baseline surveys
must establish the nature and extent of loss
to livelihoods and enumerate all categories
of adversely affected and displaced individuals,
families, and communities. This will be done
with the participation of the affected people
300
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
and reflect a rights-and-risks approach (G uide-
lineU).
E ligibility and L evd of Benefits: A 1 1 adversely
affected people are entitled to benefits. T he
level of benefits must be assessed, agreed upon
by the parties involved (affected people,
government, and developer/financier) and
included in the performance contract.
6 enefit D divery and R edress M echanisms: The
mitigation and development office is responsi-
ble for the delivery of benefits to the affected
people (G uideline 19). T he multi-stakeholder
committee will hear all representations
relating to identification of beneficiaries,
apportionment of benefits, performance
contracts, and delivery of benefits.
Ensuring Compliance
21. Compliance Plans
T he preparation of an overarching C ompli-
ance Plan by the developer will address
technical, financial, social and environmen-
tal obligations and commitments and
provide the means for the developer to
describe clearly how compliance will be
ensured for a particular project. T he stake-
holder forum will be able to monitor com-
pliance against the plan, which will be a
publicly available document.
States are at di fferent stages i n the de/d op-
ment of regul atory ^ems and i nsti tuti onal
capaci ty. T he range of tool s sel ected to
ensure compi i ance for any parti cul ar proj ect
woul d vary from case to caee. W h i I e vari a-
tions in systems and capacity will result in
project-specific Compliance Plans the level
of compI i ance shoul d be cons! stent.
In usingCompliancePlansin connection
with the constructi on of dams a number of
issueswill needtobeaddressdonacas-by-
cas basi s i ncl udi ng the fol I owi ng:
■ The laws applicable to the construction of
dams. These will vary from country to
country and the Compliance Plan will
need to be consistent with local laws.
T he use of voluntary measures. These will
include tools such as comprehensive
compliance criteria and guidelines, ISO
certification, integrity pacts (see G uide-
line 25) and the independent review of
internal processes and commitments.
The level of in-country institutional capaci-
ty. W here it is insufficient to meet the
requirements of the plan, provision must
be made for training and other technical
assistance, as required, to ensure suffi-
cient capacity is put in place.
T he use of performance bonds, supported by
financial guarantees and trust funds. T he
use of one or both of these measures will
be needed to ensure sufficient funds have
been set aside to secure performance.
They will need to be developed and
applied in a manner that best suits the
particular circumstances (see G uideline
23: Performance Bonds and Guideline 24:
Trust Funds).
T he cost of compliance. T h e cost of
compliance will need to be built into the
plan, the project budget and the evalua-
tion process.
Performance indicators and benchmarks
need to be established against which
compliance can be assessed.
The Report of the World Commission on Dams
301
Chapter 9
22. Independent Review
Panels for Social and
Environmental Matters
Independent review panels (IRP) should be
established for all dam projects. They differ
from tribunals, commissions, judicial reviews
or other recourse mechanisms as their
principal task is reviewing assessment of
impacts and the planning, design and
implementation of social and environmental
mitigation plans. In some countries their
recommendations can be binding on all
parties. In others they are only advisory. The
scope of the IRP powers is laid out in its
terms of reference. T hey report to the
regulator, developer, consultants, affected
peoples and financing agency to help ensure
the best possible social and environmental
outcomes. The IRP is not a dispute resolu-
tion mechanism, but may assist in bringing
issues to the attention of the relevant body
for resolution.
I RPs offer independent assessments of the
issues that should be dealt with in project
level impact assessments and project imple-
mentation, while also providing a mecha-
nism to transfer best practice from one
project to another, both nationally and
internationally I R Ps further provide a
quality control function to assure the
developer, regulator, financing agency and
affected groups that the necessary standards
are being met and that laws or guidelines are
complied with, as laid out in the C ompli-
ance Plan. They usually perform functions
in the social and environmental domain
similar to independent engineering inspec-
tors for technical issues.
The composition and tasks of I RPs can be
adapted to different stages of the project
cycle, although it will be useful to maintain
core members (normally one ecologist and
one social scientist) to ensure continuity
through the different project phases. Plan-
ning and appraisal may call for different
skills and composition to those needed for
monitoring implementation of an environ-
mental management plan or the resettle-
ment and development programme.
In establishing an independent panel. States
and financing agencies should consider the
following:
■ Project level I RPs should be established
by the State (as developer or regulator or
the M inistry of Environment), in agree-
ment with the stakeholder forum, as
soon as the options assessment has
decided on a dam as a possible option,
and prior to project-level impact assess-
ment beginning.
■ I RPs are funded by the State, the devel-
oper or a financing agency according to
local circumstances. The IRP forms an
integral part of project costs.
■ The primary reporting responsibility of
I R Ps should be to the national govern-
ment involved and more specifically the
responsible project agency and regulator.
The IRP should include members able to
effectively address the major issues that are
addressed by state-of-the-art ecosystem,
demographic, social and health assess-
ments. T hey have the prerogative to add
additional members to deal with issues for
which the I RP has insufficient expertise.
Panels should include at least one host
country national and at least one member
supported by any affected people. The IRP is
independent of all parties and its terms of
reference should allow the panel to look
into any issues deemed important without
the need to justify such examination.
■ The developer ensures systematic infor-
mation distribution to the IRP, which
302
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
has access to all project- related docu-
mentation.
■ All reports following panel missions must
become public documents once the
developer or appropriate agency has had
a reasonable time to comment (usually
one month). Should the developer or
other agencies request assistance on a
confidential basis then that is an issue for
them and the IRP to negotiate.
■ The developer has the obligation to
show how they are responding, or intend
to respond, to the issues raised by the
IRP.
■ Frequency of IRP visits to the project
area should be flexible. In some phases
one per year may be sufficient, though
once construction starts, six monthly
intervals would be more appropriate.
23. Performance Bonds
Performance bonds supported by financial
guarantees provide a secure way of ensuring
compliance with commitments and obliga-
tions (see Box 9.6). They are used by mining
and environment protection agencies and in
the construction industry in many different
countries. T he bond is called upon, either in
whole or in part, to meet unfulfilled obliga-
tions and commitments or is released when
commitments are met, either in whole or in
part, depending upon the circumstances.
Performance bonds have been used widely
in the construction industry to ensure that
work is completed within the specified time
period and to specified standards (including
during the construction of dams). They are
also used in relation to activities that carry a
high risk to the environment; for example
ensuring that mine sites will be rehabilitated.
I n applying the use of performance bonds to
the social and environmental mitigation
measures related to the construction of
dams, a number of issues will need to be
addressed on a case-by-case basis, including
thefollowing:
■ The activities the bond will apply to. The
bond could apply to a wide range of
activities, such as physical resettlement
and provision of benefits, environmental
mitigation works, monitoring, auditing
and decommissioning, or to aspects of
each of these activities. Bonds should be
carefully targeted to activities identified
in an approved management plan and,
preferably should apply to the developer
who is ultimately responsible for the
entire project. The developer may in
turn enter into performance bonds with
contractors.
■ The form of security, including insurance
cover, to be provided. A package of
measures can be used that collectively
results in providing sufficient financial
assurance. T he use of bank guarantees is
a cost-efficient method of providing
financial assurance, but there are many
others, including insurance cover.
■ Who will hold the bond and hence determine
whether to release or use the security The
relevant government agency (the envi-
ronmental protection agency or mines
department) has been used in most
countries where performance bonds have
been used to date. H owever, a well -
structured trust fund can also be used,
particularly where the government is also
the developer (G uideline 24).
■ The appropriate level of financial assurance
Considerations include the higher cost
to government to do the works, a contin-
gency sum for high-risk activities.
The Report of the World Commission on Dams
303
Box 9.6 Financial assurances and tlie Environment Protection
Agency, Victoria, Australia
The use of performance bonds supported by financial assurances has
now been successfully applied in a number of different areas. For
example, following a chemical waste management company becoming
bankrupt and leaving the government with a potential liability to
dispose of abandoned waste, the Victorian Environment Protection
Agency (EPA) required financial assurances from 38 companies
involved in the waste industry The level of the financial assurance was
arrived at based upon the extent of the environmental risk - which has
since been reduced where improved environmental management
systems have been put into place. While the EPA has not called on any
financial assurances to date, the programme has been successful in
raising the performance of the industry overall and has protected the
government from financial nsk. The programme is being extended to
cover landfills and major petroleum product storage sites.
Source: Robinson, pers. comm. 2000
making provision for staged assurance,
and providing a discount for quality
management, good past practice, and/or
a lower risk activity.
T he stages of the development when the
security will be released. Partial release
provides a form of financial incentive to
the developer to discharge its responsi-
bilities.
Regular review of the level of security to
reflect the actual costs A fall-back provi-
sion is needed that allows the State to
extract the difference from the developer
where the level of security proves to be
insufficient.
24. Trust Funds
Trust funds have been used over a long
period of time, and in a wide variety of
situations, to ensure that funds set aside for
a particular purpose are used for that pur-
pose (see Box 9.7). In recent years they have
been applied to the establishment and
ongoing management of government-
protected areas, through initiatives funded
by the G lobal Environment Facility
amongst others. There is scope to extend
these funds to other areas where there is a
need to set aside monies to be applied for a
particular purpose, such as benefit sharing
and mitigation measures associated with the
construction of dams. T hey could also be
used for decentralising responsibility to
affected communities for planning and
implementing their own mitigation, devel-
opment and resettlement programmes.
Trust funds could be effectively used, either
alone or in conjunction with bonds, to
secure the financing of ongoing obligations
in relation to monitoring and auditing -
activities that must continue for the life of
the project. This could include providing an
effective meansfor the collection and
distribution of royalties from dam-related
activities to fund ongoing initiatives.
T he use of trust funds would be most appro-
priate where the proponent is the State. I n
such cases, the concern is no longer one of
ensuring that the risk is not passed from the
developer to the government, rather it is
ensuring that the risk is not passed from the
State to the affected communities and to
the environment.
In using trust funds in connection with the
construction of dams, a number of issues will
need to be addressed on a case-by-case basis,
includingthefollowing:
■ The laws applicable to the establishment of
trust funds These will vary from country
to country and the trust deed will need
to be consistent with local laws.
■ The content of the trust deed. T his will
need to include an open and transparent
process for appointing trustees and
administering the fund and for setting
304
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
out the activities the funds will be
applied to, such as resettlement, environ-
mental mitigation, monitoring and
auditing. The deed must be publicly
available.
T he trustees of the fund. The trustees wi 1 1
need to be sufficiently independent from
the developer and have the confidence
of stakeholders.
T he role of affected people T h ei r rol e i n
managing trust funds in relation to
mitigation, resettlement and develop-
ment needs to be defined.
Box 9.7 Suriname Central Nature Reserve
n 1998, the Government of Sunname announced the creation of the
Central Sunname Nature Reserve, a protected area that covers 10% of
the country. The ongoing maintenance of this protected area is
secured through the Suriname Conservation Foundation Trust Fund
announced in April 2000, which will ultimately administer a $15-million
endowment. This sum will be invested in the fund through contribu-
tions from numerous donors. The fund will be used for long-term
management support, ecological surveys, conservation awareness and
education, and ecotourism as a conservation enterpnse. The fund's
trustees are drawn from government, sponsonng institutions, the
pnvate sector and indigenous peoples.
Source: Famalore, pers. comm. 2000
25. Integrity Pacts
I ntegrity pacts relate to the procurement
process, namely the supply of goods and
services. (See Box 9.8 and C hapter 8
Strategic Priority 6: Ensuring Compliance)
T hey are voluntary undertakings aimed at
reducing corruption and founded on con-
tractual rights and obligations. They can be
used as one component of a Compliance
Plan. Integrity pacts are of particular use in
situations where regulatory systems and
institutional capacity are weak, but they
have universal application. 2°
I ntegri ty pacts i n vari ous forms have now
been tried and tested in many countries
I n appi yi ng the use of i ntegri ty pacts to the
constructi on of dams a n umber of i ssues wi 1 1
need to be addressd on a case- by-case basis
i ncl udi ng the fol I owi ng:
T he form and content of the pact The
form and content of the pact must
comply with accepted international
models and past applications.
The level of in-country institutional capaci-
ty. W here this is insufficient to meet the
requirements of the integrity pact,
provision must be made for training and
other technical assistance, as required, to
ensure sufficient capacity is put into
place. T his should be covered in the
Compliance Plan (G uideline21).
Box 9.8 Mendoza Province, Argentina
The Provincial Governor of M endoza Province, Argentina decided in
1997 to amend procurement rules to include an Integnty Agreement
between the Government of the Province and companies interested in
bidding for government contracts. Government commitments under
this agreement include providing full transparency in relationships with
suppliers, ensunng that employees will not accept or demand any
bnbes, informing the State Prosecutor of any violations, requinng a bid
bond, excluding violators from future contracts, and having the State
Prosecutor oversee implementation of the policy
Source: Wiehen, 1999
The Report of the World Commission on Dams
305
Chapter 9
Sharing Rivers for Peace, Development, and Security
26. Procedures for Shared
Rivers
A basin-wide perspective is promoted for
open discussion of tlie issues, negotiation on
sharing the benefits, and the mitigation of
any adverse impacts. The procedures for
equitable and reasonable utilisation, no
significant harm, prior notification, impact
assessment, and dispute resolution will build
on provisions of the U N C onvention on the
Law of the N on-N avigational U ses of
International Watercourses and other
international agreements. Such provisions
are also relevant to rivers within a country
shared between a number of sub-national
entities.
Prior notification
States considering options that may have a
significant impact on other riparian States
should notify those States at various stages
and establish an effective channel of com-
munication between all potentially affected
parties. Notification should occur:
■ at an early stage of planning, as part of
the strategic impact assessment, and
should allow potentially affected riparian
States at least three months to identify
relevant issues for inclusion in subse-
quent preparatory studies and impact
assessments;
■ during thescoping stage of impact assess-
ments, to allow agreement on mechanisms
for sharing technical data and information,
and for participation in project- related
impact assessments - potentially affected
riparian States should respond within three
months of the notification;
■ prior to selecting an option on a shared
river as part of a preferred development
plan - potentially affected riparian states
should receive adequate technical informa-
tion about the proposed project and the
results of any impact assessments, and
should respond in writing within six
months of the notification with their
findings and response to the proposed
project; and
■ as required to cover any additional data
and information that is available and
necessary for an accurate evaluation by
any potentially affected riparian States.
In the event that properly notified riparian
States do not respond in a reasonable and
timely manner, the notifying State would
proceed with planning and development,
subject to its observance of the relevant
international law principles and the Commis-
sion's strategic priorities and policy principles
I n the event that a State fails to notify
another riparian State which could poten-
tially suffer significant harm by the proposed
action, the potentially affected State should
be able to request and receive information,
make their views known, including propos-
ing modifications, and be part of a negotiat-
ed settlement before any action to construct
the dam istaken. If this opportunity is
denied, remedies should beavailablethrough
the International Court ofJustice(ICJ), or
other appropriate mechanisms. A ny external
financing for the dam should be conditional
upon resolution of the issue as described in
Chapters (see policy principle 7.5).
Basin-wide impact assessment
T he C ommission's G uidelines on Strategic
I mpact A ssessment and Project-L eve! I mpact
A ssessment, taken together with prevailing
regulatory requirements, provide the frame-
work for a basin-wide assessment of impacts.
306
Dams and Development: A New Framework for Decision-Making
Guidelines for Good Practice
I mpact assessments designed to suit context-
specific situations need to:
■ include a participatory basin-wide
scoping phase;
■ tal<e into consideration the submissions
of riparian states and affected communi-
ties; and
■ be subjected to review by an independ-
ent panel agreed upon by all potentially
affected riparian states.
A II states should give the independent panel
access to all necessary information.
Dispute resolution
In the event a dispute cannot be resolved
within six months, either through good faith
negotiations or independent dispute resolu-
tion, it should be referred to a fact-finding
commission as detailed in A rticle33 of the
U N C onvention on the Law of the N on-
Navigational Uses of International Water-
courses. Failing resolution through this
body, the dispute should be heard by the ICJ
either through case specific agreement or
through compulsory jurisdiction in A rticle
36 of its statute.
Endnotes
1 W CD Thematic Review 1.2 Indigenous People.
2 W CD Thematic Review V.2 Environmental
andSocial Assessment; WHO, 1999, W CD
Working Paper on H uman H ealth; Brandt
and Hassan, 2000, W CD Working Paper on
Cultural H eritage M anagement.
3 WCD Thematic Review V.2 Environmental
and Social A ssessment; W H 0, op cit; Brandt
and H assan, op cit.
4 W CD Thematic Review V.l Planning.
5 Ibid.
6 WCD Thematic Review 11.2 Global Change.
7 W CD Thematic Review III. 1 Economic
A nalysis. Chapter 9.
8 W CD Thematic Review III. 1 Economic
A nalysis. Chapter 4.
9 W CD Thematic Review III. 1 Economic
Analysis, Chapters2, 6, 7, 8.
10 WCD Thematic Review IV. 5 Operations.
11 Brown and King, 1999; Brown et al, 1999,
Contributing paper for W CD Thematic
Review 1 1.1 Ecosystems.
12 WCD Thematic Review II. 1 Ecosystems.
13 Brown and King, op cit; Brown et al, 1999,
Contributing paper for W CD Thematic
Review II. 1 Ecosystems.
14 Bernacsek, 2000, Contributing paper for
WCD Thematic Review II. 1 Ecosystems.
15 WCD Thematic Review V.2 Environmental
and Social A ssessment.
16 WCD Thematic Review 1.3 Displacement;
Cernea, 2000.
17 Scudder, 1997c.
18 WCD Thematic Review 1.3 Displacement.
19 W CD Thematic Review V.4 Regulation.
20 Ibid; Wiehen, 1999.
The Report of the World Commission on Dams
307
Chapter 10
Beyond the Commission -
An Agenda for Change
Our report has distilled more
than two years of intense
study, dialogue, and reflection by the
World C ommission on D ams
(WCD), theWCD Secretariat, the
1/1/ CD Forum, and hundreds of
individual experts on every facet of
the dams debate. It contains all the
significant findings that result from
this work and expresses everything
that we, the C ommission, feel is
important to communicate to gov-
ernments the private sector, civil
society actors and affected peoples -
in short, to the entire spectrum of
participants in the dams debate.
Chapter 10
The debate about dams
began well before the
Commission, and It will
continue well beyond It.
We hope that one of the
lasting results of the
WCD process will have
been to change the tenor
of that debate from one
of lack of trust and
destructive confrontation
to co-operation, shared
goals and more equitable
development outcomes.
The Commission alone is
ultimately responsible for the
conclusions and recommenda-
tions presented here.
D ams and D evelopment: A New
Framework for D ecision-M aking
provides a solid basis for
assessing options for energy
and water development, and
for planning and implement-
ing projects that can achieve
the desired benefits without
exacting an unacceptable cost
for anyone affected, or for our
environment. If all parties
now adopt, adapt, and implement our
recommendations in good faith, much of the
energy currently focused on the controversy
surrounding large dams can be channelled
into improving development outcomes on a
co-operative and sustainable basis. But this
will not happen unless the wider dams
constituencies - those who entrusted us
with the mandate two years ago and who
created the C ommission as a platform for
dialogue - become the heirs of our work, go
forth with it, and multiply its impact.
The evidence we present is compelling. We
feel confident that the WCD Knowledge
Base provides overwhelming support for the
main messages in the report. We believe
there can no longer be any justifiable doubt
about the following:
■ Dams have made an important and
significant contribution to human
development, and the benefits derived
from them have been considerable.
■ I n too many cases an unacceptable, and
often unnecessary and high price has
been paid to secure those benefits,
especially in social and environmental
terms, by people displaced, by communi-
ties downstream, by taxpayers and by the
natural environment.
■ Lack of equity in the distribution of
benefits has called into question the
value of many dams in meeting water
and energy development needs when
compared with the alternatives.
■ By bringing to the table all those whose
rights are involved, and who bear the
risks associated with different options for
water and energy resources development,
the conditions for a positive resolution of
conflicts and competing interests are
created.
■ Negotiating outcomes will greatly
improve the development effectiveness
of water and energy projects by eliminat-
ing unfavourable projects at an early
stage, and by offering as a choice only
those options that key stakeholders agree
represent the best ones to meet the needs
in question.
The directions are clear. It is one thing,
however, to see this. It is another to actively
breakthrough traditional boundaries of
thinking, step into a different frame of mind
and look at familiar issues from another
perspective. This is what the C ommission
has had to do, and we have shown over two
years that it works. We have seen similar
constructive processes at work among many
of the constituencies that have participated
so actively in our work as they have come to
understand what motivates other interest
groups.
It is time now to bring the debate home.
T he controversy over dams has appropriate-
ly been raised to the international stage. A
dissipation of that controversy however,
should allow decisions about fundamental
water and energy development choices to be
made at the most appropriate level. This
310
Dams and Development: A New Framework for Decision-Making
Beyond the Commission - An Agenda for Change
level is one where the voices of powerful
international players and interests do not
drown the many voices of those with a
direct stake in the decisionsto be taken. For
this to work, all the actors have to make
that commitment to step out of their
familiar frame of reference. W e recommend
that all parties begin by using the report as
the starting point for discussions, debates,
internal reviews, and reassessments of
existing procedures, and for an assessment of
how they can address a changed reality.
Strategic Entry Points for
Follow-up
N obody can, of course, simply pick up the
report and implement it in full. It is not a
blueprint. This section proposes a number of
entry points to help organisations identify
immediate actions they might take in
response to the C om mission's report.
Engaging through these entry points would
initiate permanent changes to advance the
principles, criteria, and guidelines in the
report.
These entry points don't aim to be compre-
hensive. Instead, they illustrate the sorts of
actions different constituencies can take
that would, collectively, bring about a
permanent shift in the debate over our
water and energy future.
The Commission calls on all interested
parties to recognise that its recommenda-
tions are in the enlightened self-interest of
all concerned, and form a solid base for good
faith negotiations around water and energy
sector planning based on accepted norms
and on the evidence in our Knowledge Base.
We are aware that many organisations
involved with dams, water and energy will
have to review existing criteria and guide-
lines and adapt them in light of our report.
We urge all groups to study this report and
discuss how to adopt or adapt its recommen-
dations, bearing in mind that it results from
consultations that, in terms of inclusiveness
and breadth of scope, are beyond the reach
of any individual interest group. In this way
the report will serve as a common platform
for all parties to develop forms of implementa-
tion appropriate to their context and status.
This section provides an illustrative list of
short- and medium-term actions specific to
individual stakeholder groups. T he list is
addressed to all stakeholders, including
governments, the private
sector, bilateral and multilater-
al funding agencies, profes-
sional associations, and civil
society. By applying it they can
immediately begin incorporat-
ing the content and spirit of
the report in their own profes-
sional practices and help
maintain the momentum for
change generated by the work
of the Commission. A II groups
should consider the following;
■ Active dissemination of
the report
Water and energy develop-
ment interacts with many sectors and
disciplines and involves a variety of actors.
A ssist, where you can, in translating the
report into different languages, teaching
materials, checklists, and other tools that
will help shift gears from prescription to
implementation. H elp ensure that the report
reaches as many of those concerned about
the dams debate as possible. N G 0 and
professional networks especially can help
ensure that people affected by dams or those
planning and managing dams worldwide
have access to the Commission's report and
recommendations in appropriate languages.
1/1/e urge all groups to
study this report and
discuss how to adopt or
adapt its
recommendations,
bearing in mind that it
results from consultations
that, in terms of
inclusiveness and breadth
of scope, are beyond the
reach of any individual
interest group.
The Report of the World Commission on Dams
311
Chapter 10
Following such reviews,
organisations and
governments are urged to
issue a public statement of
support for the direction that
the report takes.
Wecall on local media and publications of
professional bodies to write and comment on
the report and on its proposals for the future.
■ Review the report
The Commission recommends that all inter-
ested groups put in place an appropriate
consultative process to review the report and
propose a fitting response that will lead to
effective implementation and incorporation of
its recommendations in their respective
policies. T his may take place at the national
level by government
initiative, at the regional
level, or at the level of
individual organisations. In
some cases, such as the
harmonisation of the social
and environmental provi-
sions of the Export Credit
Guarantee Agencies or
professional associations, extensive interna-
tional consultation will be essential.
H ere are some questions that need answers.
■ What are the reactions to the Commis-
sion's key proposals?
■ How will these affect ongoing activities,
immediately and in the long term?
■ W hich recommendations can be adopted?
Why not all of the recommendations?
■ W hat practices can be changed in
response to the report?
■ W hat national or international networks
or organisations might help implement
the recommendations?
The Commission welcomes a response from
all parties concerning the proposals arising
from the review processes. These will be
posted on the W C D website (send to
info@dams.org) and on any websites that
follow uptake and implementation of the
Commission's report.
■ Public pledges
Following such reviews, organisations and
governments are urged to issue a public
statement of support for the direction that
the report takes. Beyond that general
endorsement, make such pledges as specific
as possible - for example, by endorsing the
seven strategic priorities set out in
C hapter 8. G overnments and other organi-
sations are further invited to report on what
actions they have taken as a result of such
reviews, and how their policies and actions
have changed. T hese reports can also be sent
to theWCD website (info@dams.org) to
facilitate sharing of lessons and information.
■ Evaluation, monitoring, learning
T he C ommission has noted with dismay the
absence of formal processes for eval uati ng
the long-term performance and outcomes of
large dams projects worldwide, despite the
billions of dollars spent on them. T his
remains a huge gap in the process of learn-
ing from past good and bad practices, and
has severely constrained the capacity of the
sector to learn rapidly from experience, both
nationally and internationally and to
promote adaptive management.
The Commission therefore urges all parties
- national governments, aid agencies,
financiers, professional associations, and
private-sector consultants - to invest more
resources in evaluating past performance
through open, participatory processes that
build on the Commission's case study
methodology and adapt it to national
circumstances. Evaluation should normally
be undertaken every five to ten years as
some impacts only emerge over time.
■ Review dams currently under
development
The Commission recommends that public
and private developers, financiers, and
consultants involved in dams projects in all
312
Dams and Development: A New Framework for Decision-Making
Beyond the Commission - An Agenda for Change
stages of the planning and development
process give high priority to reviewing these
proposals against the framework laid out in
C hapter 9, and to adjusting procedures and
adapting projects where necessary.
■ Promote capacity building
A dopting the recommendations of the
Commission hasimplicationsfor institu-
tional capacity and financing to manage the
transition in water and energy management
that the C ommission is recommending.
Lack of capacity should not be an argument
for not adopting the C ommission's report.
C apacity must be built if good outcomes are
to be achieved, including strengthening
civil society and particularly empowering
women to make their voices heard. Bilateral
and multilateral donors, national and
international NGOs, are urged to support
this transition in developing countries and
wherever possible to offer support to inter-
national networks assisting in this process
Investing in the capacity and process for
options assessment and decision-making
should be seen as an investment in a long-
term strategy of lowering the costs of future
projects
Taking the Initiative -
Institutional Responses
T his section contains recommendations
addressed at specific stakeholders in the
dams debate. T hey are not intended to
provide a comprehensive list of what we
expect, but instead to illustrate some of the
salient actions that we believe each group
should consider as it moves from debate
over the report's thrust into actions to
implement its provisions. They are entry
points for follow-up. These recommenda-
tions result not only from the C ommission's
review of experience with past dams but
also from two years of analysis and dialogue
with many partners. T hey complement what
lies in the body of the report.
National governments
■ Establish an independent, multi-stake-
holder committee to address the unre-
solved legacy of past dams.
■ Require a review of existing procedures
and regulations concerning large dam
projects.
■ Develop a specific policy statement
governing stakeholder participation in
options assessment and planning, setting
out the range of considerations that will
be incorporated.
■ Review legal, policy and
institutional frameworks to
assess and remove any bias
against resource conserva-
tion, efficiency and decen-
tralised options, and any
hindrance to open partici-
patory processes.
■ Introduce and support a
U N G eneral A ssembly
resolution that welcomes the publication
of the Commission's report, invites
governments to accept and implement
its recommendations and transmits the
report to the Rio-MO process as a positive
example of multi-stakeholder co-opera-
tion that can result in a substantial
advance towards sustainable develop-
ment.
Line ministries
■ Issue criteria and guidelines for promot-
ing third party review and dispute
resolution around large dam projects.
■ Adopt the practice of time-bound
licences for all dams, whether public or
privately owned.
Capacity must be built if
good outcomes are to be
ach/eved, including
strengthening civil society
and particularly
empowering women to
make their voices heard.
The Report of the World Commission on Dams
313
Chapter 10
The WCD is a model that
can be, if not replicated,
then at least adapted to
other sinnilar controversial
issues that are also at the
interface of environn)ent
and developn)ent. These
are polarised issues such
as the future of
biotechnology in
development, or the role
of large mines and
extractive industry in
development.
Civil society groups
National NGOs and
international NGO
networks
Frances Seymour, World
Resources Institute
■ Participate in cross-cutting
partnerships with other
actors on key issues.
■ Gather, analyse and dissemi-
nate information widely to
promote transparency and
openness.
■ M onitor compliance with
agreements and assist any
aggrieved party to seek
resolution of outstanding
disagreements or to seek
recourse.
■ A ctively assist in identifying
the relevant stakeholders for water and
energy projects using the rights-and-risks
approach.
■ Contribute to the establishment of
appropriate forums for stakeholders to
enable them to identify articulate and
represent their legitimate rights.
Affected peoples' organisations
■ Develop proposals for follow-up dialogue
on the C ommission's report with govern-
ment authorities and project developers.
■ Identify unresolved social and environ-
mental impacts and convince the rele-
vant authorities to take effective steps to
address them.
■ Develop support networks and partner-
ships to strengthen technical and legal
capacity for needs and options assess-
ment processes.
Professional associations and
agencies
(International Commission on Large Dams,
International Commission on Irrigation and
Drainage, International H ydropower A ssoci-
ation. International Energy Agency, Inter-
national Association for Impact A ssess-
ment.)
■ Promote a culture of evaluation and self-
reflection to ensure continuous learning
from all aspects of large dam projects
through adopting appropriate procedures.
■ Extend national committees to include a
consultative group of N G 0 s, environ-
mental scientists and affected peoples'
groups.
■ Set up joint work programmes with these
groups at the national and regional levels
to learn from past experience.
■ Develop processes for certifying compli-
ance with WCD guidelines.
■ Extend national and international
databases, such as the ICOLD World
Register of Dams, to include social and
environmental parameters.
International Organisation for
Standardisation (ISO)
■ Explore the codification of the C ommis-
sion's guidelines in a sector-specific
guidance document or standard that
incorporates social impact management
as well as public reporting and negotiated
decision-making. A high degree of
developing country and civil society
participation in the standards-setting
process is needed to ensure legitimacy
Tine private sector
Suppliers, contractors, developers,
and consultants
■ Publicise the acceptance of the C ommis-
sion's principles, criteria and guidelines
in corporate policy and company litera-
ture.
■ A bide by the provisions of the anti-
bribery convention of the Organisation
314
Dams and Development: A New Framework for Decision-Making
Beyond the Commission - An Agenda for Change
for Economic C o-operation and D evel-
opment.
■ A dopt integrity pacts for all contracts
and procurement, as developed by
Transparency International.
■ Develop and adopt voluntary codes of
conduct, management systems and
certification procedures for best ensuring
and demonstrating compliance with the
Commission's guidelines, including, for
example, through the ISO 14001 man-
agement system standard.
■ For consulting companies, refine the use
of the tools proposed by the C ommission
so they become standard industry prac-
tice. These include distributional analy-
sis, multi-criteria analysis, risk and
sensitivity analysis, rights-and-risks
approach, and environmental flow
assessments.
■ Putin place mechanisms to ensure that
designers of dams either participate in or
at least receive evaluations of predicted
social, environmental, financial, and
economic performance five years after
construction in order to learn from their
experience. Make these evaluations
available to the public.
Private financiers
■ Develop criteria for innovative bond-
rating systems for use in financing all
options, including large dams, in the
water resources and electric power
sectors.
■ Recognise the risk reduction opportuni-
ties inherent in proper options assess-
ment and develop legally binding ar-
rangements on environmental and social
matters in assessing insurance, equity,
and bond premiums.
■ I ncorporate the principles, criteria, and
guidelines of the Commission in corpo-
rate social responsibility
policies and statements.
■ Use the Commission's
guidelines as social and
environmental screens for
evaluating support for, and
investment in, individual
projects.
Bilateral aid agencies
and multilateral
development banks
The example of the WCD
shows that establishing a
basic measure of trust
among actors in a conflict-
ridden environment is time-
consuming and costly, but
launching a sustainable
mechanism for consensus
building and standards
setting requires no less.
Wolfgang Reinicke and
Francis Deng, Critical Choices
Develop programmes to
help countries, especially those with a
significant existing or potential dam
population, formulate a response to the
Commission's report and find ways to
implement its recommendations.
Ensure that any dam options for which
financing is approved emerge from an
agreed process of ranking alternatives
and respect the C ommission's guidelines.
A ccelerate the shift from project- to
sector-based finance, especially through
increasing financial and technical
support for effective, transparent, and
participatory needs and options assess-
ment, and the financing of non-structural
alternatives.
Review the portfolio of past projects to
identify those that may have under-
performed or present unresolved issues
and share in addressing the financial
burden of such projects for borrower
countries. This may include, for example,
cancelling the outstanding debt related
to them, converting debt repayment into
development assistance targeting affect-
ed areas, or providing new support to
help borrower countries address unresolved
economic, social, and environmental
problems.
The Report of the World Commission on Dams
315
Chapter 10
At the beginning n)any
doubted the Con)n)ision's
independence but if you've
followed it closely, you will
realise the Commission lias
done excellent work and its
independence has been
respected. There was a spirit
of openness, of
understanding, a dialogue
between partners.
m Review internal processes
and operational policies in
relation to the C ommission's
recommendations to deter-
mine changes needed in the
selection of projects for
lending portfolios; the
appraisal process; and imple-
mentation, monitoring, and
evaluation.
Export credit agencies
Aboubacry M bodji,
CODESEN , a coalition of
NGOs concerned with
development
■ Introduce and adopt com-
mon environmental, social
and transboundary criteria
for financial guarantees and
strengthen institutional capacity to
appraise projects against such criteria.
I mprove co-ordination among agencies
at the international level to ensure that
dam projects refused by one agency are
not accepted by others.
Require private-sector applicants for dam
projects to meet due diligence criteria or
voluntary codes of conduct that conform
to the Commission's recommendations.
Promote consultation and information
disclosure as normal procedure.
Intergovernmental
organisations
The U nited N ations
■ Facilitate the adoption of a G eneral
A ssembly resolution on the C ommis-
sion's findings and encourage the inclu-
sion of the report in the Rio-MO process.
UN technical agencies
(World Health Organisation, Food and
A griculture 0 rganisation, U nited N ations
Development Programme, United Nations
Educational, Scientific and C ultural 0 rgani-
sation, etc.)
■ Review technical guidelines, norms, and
practices regarding water and energy
resources development to integrate the
principles, guidelines, and criteria from
the Commission's report.
■ Provide support to improve national
capacity for options assessment in
developing countries.
United N ations Environment
Programme
■ Actively promote the results of the
Commission in its co-ordinating and
catalysing environmental work within
the UN family of organisations.
■ Examine how the M ultilateral Environ-
mental A greementsthat it administers
might serve to strengthen the spirit and
advance the proposals of the C ommission.
Academic and research bodies
■ A ssist in the evaluation of further dam case
studiesfollowingWCD methodology.
■ U ndertake research on alternatives to
dams such as demand side management
and ensure these are available to deci-
sion-makers through the options assess-
ment process.
■ Assist in improving the W CD
Knowledge Base as outlined in Box 10.1.
Continuing the Dialogue
T he previous section identified a small
selection of specific recommendations aimed
at the major groups of participants in the
dams debate. It focused on actions that
could be taken immediately and that, in
many cases, are specific to the target group
they are directed at.
We choose not to go beyond this for two
principal reasons. First, the Commission has
316
Dams and Development: A New Framework for Decision-Making
Beyond the Commission - An Agenda for Change
found that most problems associated with
dams result from faults in the process of
options assessment and decision-making on
energy and water development choices. It
follows that the solution liesin making
improvements to the process - improve-
ments that will make it more even-handed,
equitable, transparent, and inclusive. How
the process is designed and conducted will
depend, to a large extent, on country or
setting. There is no universally applicable
model - only basic principles.
T he second reason is more significant.
U nlike other Commissions, whose reports
were essentially aimed at governments or
the international community, our report has
a broad and diverse target. It is aimed
equally at governments, international
organisations, multinational companies,
financiers, consultants NGO networks,
indigenous communities, and locally organ-
ised groups of people affected by dams.
T here is no natural heir to our work other
than the complex and multi-faceted com-
munity of those concerned with dams issues.
It is appropriate that we seek to build no
lasting international edifice but instead
prefer to send our report for implementation
where it belongs - to the regional, country,
basin, community, and dam-specific level.
We hope and expect that the report will
lead to regional and national processes of
dialogue, to discussions concerning specific
projects or issues, to new research and
training programmes, to new networks - in
short, to a multiplicity of results and develop-
ments that are decentralised, dispersed, and
highly diverse in character We hope that they
will include many new partnerships across
sectors where earlier divides existed, connect-
ing to understand differing interests and to
identify shared objectives T his would be in
keeping with the spirit of the C ommission.
In fact, this is already happening. W hether
or not connected to the W C D process, the
debate around dams continues For example,
policies and institutional responses are evolv-
ing, due to improved awareness, in Brazil,
Sri Lanka, U nited Kingdom, Thailand and
Nepal. Actors continue to respond with
tailor-made solutionsto local issues such as:
■ proposals for a national commission on
dams, modelled on the W C D ;
Box 10.1 Priorities for strengtliening tlie l<nowledge base
A major constraint the Commission faced was a lack of comparative data on tine
development effectiveness of large dams and the actual direct and indirect
consequences of such dams on local, regional, and national development, and
more specifically on affected people and environments. M uch information is
either not available or not shared by those who hold it. Detailed studies are
needed that are comparative, comprehensive, integrated, long-term, cumula-
tive, and adaptive. There are numerous areas about which the Commission
found insufficient information on which to base strategic recommendations.
The priorities for more information and understanding through specific
research, data collection, monitoring, and evaluation include
■ Studies to compare the direct and indirect benefits and costs of multipur-
pose dams with alternative options,
■ Research to inform strategic thinking on the cumulative impacts of a cascade
of dams or interbasin transfers on nver basin environments and populations
and on local, regional and national development,
■ Information on the potential for multiplier effects relating to food produc-
tion, water use efficiency poverty alleviation, and non-farm linkages of dam-
supplied major Irrigation projects with other irngation and agriculture
options,
■ The impacts of main-stem and tributary dams on downstream ecosystems,
including deltas and the livelihoods of people using those ecosystems.
■ A better understanding of the extent to which managed floods can offset the
mpacts of dams on downstream ecosystems and livelihoods,
■ Improved understanding of how dams impact on women and gender
relationships.
■ Improved understanding of how to influence rural-urban migration and the
requirements of meeting needs through decentralised rural development
compared to the challenge of servicing mega-cities for water and energy
■ Baseline studies of greenhouse gas emissions from pre-project nvers for
comparison with emissions from post-project reservoirs on those rivers, to
facilitate study of how the change from a natural to a human-modified
system influences greenhouse gas emissions,
■ In anticipation of global warming, research and strategic thinking on the
mpact of past periods of drought on the ability of large dams to deliver
expected services in arid, semi-and, and drought-prone areas.
■ Identification of techniques for recharging aquifers on a larger scale as a
storage technique for avoiding water loss through evaporation, and for
improving conjunctive and sustainable use of surface and ground water
■ Development of improved policies and practices to ensure that cultura
heritage is dealt with in the planning and Implementation of dam projects,
given the importance of river basins forthe origins of human civilisation
The Report of the World Commission on Dams
317
Chapter 10
■ multi-stakeholder workshops convened
to receive a debriefing following the last
meeting of the W C D Forum and to
develop a national dialogue;
■ independent mechanisms to review and
resolve escalating conflicts on dam
projects;
■ reviews of export credit policies follow-
ing controversy on particular dams; and
■ reviews of dam safety and compensation
policy for dam-affected people.
Weexpect that such examples will multiply as
our report is disseminated and becomes part of
the ongoing discourse about dams and devel-
opment.
Unlike other
Commissions, whose
reports were essentially
aimed at governments
or the international
community, our report
has a broad and diverse
target. It is aimed
equally at
governments,
international
organisations,
multinational
companies, financiers,
consultants, NGO
networks, indigenous
communities, and
locally organised
groups of people
affected by dams.
T he debate about dams began
well before the Commission, and
it will continue well beyond it.
We hope that one of the lasting
resultsof theWCD process will
have been to change the tenor of
that debate from one of lack of
trust and destructive confronta-
tion to co-operation, shared goals
and more equitable development
outcomes We must not, however,
give the impression that the
C ommission has laid the dams
debate to rest. Several important
elements of that debate must
continue in order to carry the
discussion on dams forward in the
context of meeting development
goals.
For one thing, the Knowledge
Base is not complete. Extensive
as the information gathered, structured, and
analysed by the Commission may be, there
are still gaps in our knowledge, experience,
and understanding. M any issues cannot
finally be settled because the information
needed to resolve them is still not available.
The process of information gathering,
analysis, learning, consultation and review
must go on (see Box 10.1).
M oreover the Commission, in the course of
its work, generated a wealth of ideas for the
future. These ranged from policy regulatory
and institutional tools to best practice
experience at the community level. M any of
these ideas inspired the principles and
guidelines set out in our report. But there
are also many that proved too detailed, too
context-specific, or too untested to include
here. T hey should not be lost. For example,
theWCD Knowledge Base can be used to
develop a series of practical tools in as many
language versions as possible. Publishing a
regular State of World Dams Report is
another possible project. Ideas for national
or international recourse mechanisms and
co-ordinated monitoring of compliance
include creating national dams inspection
panels, developing a register of accredited
independent experts for review panels, and
establishing a system for assuring that
individual dams or stages in dam projects
conform with the Commission's guidance,
through an independent and iterative
verification process along the linesof the ISO
14001 third-party certification mechanism.
N one of these follow-up ideas, nor much of
what lies in the body of the report, will
advance very far without a concerted and
large-scale effort to build the necessary
expertise and institutional capacity for
implementing them. Thispoint cannot be
stressed enough. It is one thing to propose a
model or set of actions that will sweep away
the problems encountered in pursuing
energy and water development, especially
when dams are involved. It is quite another
to put the solutions patiently in place.
Calling upon developing countries to slot
318
Dams and Development: A New Framework for Decision-Making
Beyond the Commission - An Agenda for Change
proposals into a frannework that does not
exist, or that is incapable of accommodating
them, is a recipe for frustration. The Com-
mission is convinced that helping to build
the capacity to consider fully all options for
water and energy development is as impor-
tant as implementing any choices that are
made. Often the latter cannot take place
without the former.
We hope that the momentum generated
during the past three years - from the G land
meeting, through all the papers and reviews
written for the Commission, to the actions
taken to launch and disseminate the report
- will be sufficient to carry the process
forward. The establishment of the Commis-
sion opened an important space for debate
and dialogue, and that space has been fully
used. Further spaces must now be created
and filled.
A Call to Action
The work of theWorld Commission on
Damsisover. But the concerns that led to
its establishment are still with us. Dams
have too often left a legacy of social injus-
tice and environmental damage, and that
legacy does not disappear because we have
identified a better way of doing things in
future. Early and resolute action to address
some of the issues arising from the past will
go a long way to building the trust required
to enable the different actors to work
together. So, too, would an assurance to
countries still at an early stage of economic
development that the dams option will not
be foreclosed before they have had a chance
to examine their water and energy develop-
ment choices within the context of their
own development process.
T he experience of the C ommission demon-
strates that common ground can be found
without compromising individual values or
losing a sense of purpose. But it also demon-
strates that all concerned parties must stay
together if we are to resolve the issues
surrounding water and energy resources
development. It is a process with multiple
heirs and no clear arbiter. We must move
forward together or we wi 1 1 fai I .
We do not assume, of course, that there will
be no further disagreement. Dynamic debate
leads frequently to better outcomes, as
controversy can often be
empowering. We do, however,
believe that we will not turn
the corner and put the princi-
pal conflicts around water and
energy development behind us
unless the participants in the
debate decide to work together
locally, nationally, and global-
ly, in the spirit of the Commis-
sion.
The world never stands still.
The context in which deci-
sions on energy options and
water development must be
made is in constant evolution. Technology
is advancing, democracy and governance
reform is spreading, the market is changing
and the demand for greater equity is growing
more resolute and persistent. A s noted in
Chapter 1, this century will see increasing
stress on water resources worldwide. T he
assessment of water and energy options and
of the role dams play, increasingly takes
place against a background of competing
sectors and interests. G rowing needs and a
dwindling resource base, in both quantity
and quality, will require many countries to
fundamentally reassess their water manage-
ment policies. We are convinced that
business as usual will not prove to be a
viable strategy.
Sri Lanka and other
countries have already
benefited fron) the WCD
process... For example, Sri
Lanka has appointed a
con)n)ittee to exam/ne the
grievances of dann-affected
people and to con)pensate
victin)s, as well as to take
action on dam safety issues
not undertaken earlier
Tilak Ranaviraja, M inistry of
Mahaweli Development
The Report of the World Commission on Dams
319
Chapter 10
The work of the World
Commission on Dams is
over But the concerns
that led to its
establishment are still
with us. Early and
resolute action to address
some of the issues arising
from the past will go a
long way to building the
trust required to enable
the different actors to
work together
The Commission has not
sought to divert these global
trends or to predict their future
scale and direction. We have,
instead, tried to bring them
together, in some form of
harmony, on a score card that
the range of actors in the
debate can use. We believe this
report is a milestone in the
evolution of dams as a develop-
ment option. We have con-
ducted the first comprehensive
and global review of the
performance of dams and their contribution to
development. We have done this through an
inclusive process that has brought all signifi-
cant players into the debate. A nd we believe
we have shifted the centre of gravity in the
dams debate to one focused on options
assessment and participatory decision-making.
T he rights-and-risks approach we propose will
raise the importance of social and environ-
mental dimensionsof damsto a level once
reserved for the economic dimension.
W e have told our story W hat happens next
is up to you.
320
Dams and Development: A New Framework for Decision-Making
A Comment -
Medha Patkar
1. The processof the World Commission
on Dams was unprecedented in bringing
together so many of those involved in
debates and conflicts over large dams.
M any peoples' movements and N G 0 s -
the constituency that first proposed a
comprehensive and independent review
- actively participated. Our final Report
hassynthesised enormous amounts of
information and diverse opinions and
delivered many important findings and
recommendations. I hope it will be a
reference for all those concerned about
large dams. W hile signing the Report
because of its many positive aspects, I
still feel I must put forth this opinion on
some fundamental issues that are missing
or not given the central place they
deserve.
2. The problems of dams are a symptom of
the larger failure of the unjust and
destructive dominant development
model. It is beyond the scope of our
report or the brief of the C ommission to
resolve all the underlying problems of
global development. But addressing these
issues is essential in any attempt to reach
an adequate analysis of the basic systemic
changes needed to achieve equitable and
sustainable development and to give a
pointer towards challenging the forces
that lead to the marginalisation of a
majority through the imposition of
unjust technologies like large dams.
3. T he frequent failure of large dams to
provide their claimed benefits and this
poor performance needs to be recognised
and accepted. T here is no reason for
optimism on thefeasibility of improving
the poor performance of dams and
mitigating their impacts. A major
question is the feasibility of just rehabili-
tation with land for land lost by agricul-
turists and alternative, appropriate
sources of livelihood for other displaced
people. I n large scale displacement, the
experience shows a clear failure. Within
the value framework the Commission
propagates - equity sustain ability
transparency, accountability participa-
tory decision-making, and efficiency -
large dams have not helped attain, but
rather hindered, "human development".
4. A n inclusive, transparent processof
decision-making with equal status to all
the stakeholders, equal place for local
and national needs and plans, equal
significance to social, environmental,
technical and financial aspects of plan-
ning, would be a great advance, but does
not go far enough. Even with rights
recognised, risks assessed and stakehold-
ers identified, existing iniquitous power
relations would too easily allow develop-
ers to dominate and distort such process-
es. T hese developers include multilateral
institutions like the World Bank that
have pushed many large dams despite
Comment
non-compliance with tlieirown policies.
The State, controlled by powerful vested
interests, may do the same. U nderstand-
ing this takes us beyond a faith in
negotiations to emphasize certain
priorities and primacies.
Communities, especially those who live
on and seek livelihood from their natural
resource base, such as forest produce
gatherers, farmers or fisherpeople, should
have the first right to planning, develop-
ment and management of those resourc-
es. Inequities within communities also
need to be recognised and addressed.
Social and environmental parameters
must have a higher weightage than the
technical and financial aspects in deci-
sions concerning human development. It
is necessary to stress the 'principle of
subsidiarity', according to which devel-
opment planning would be based on
micro-catchments, working from ridge to
river, and from origin to sea.
5. A full assessment of the options for
meeting water and energy needs as the
first part of project planning needs to be
supported. But only creating a level
playing field for options cannot suffice.
We should instead give priority to more
equitable, sustainable and effective options
to satisfy basic human needs and liveli-
hoods for all before supporting the addi-
tional luxuries of thefew, unjustified in the
face of the many who remain deprived.
6. T he wider context of national and global
political and economic trends obviously
affect decisions in the water and power
sector T hese trends include the dimin-
ishing role of the State, the growing
marginalisation of national laws and
institutions, and the trampling of human
rights due to the expanding role of
private capital and free trade. W hile
there may be a few welcome instances of
progress towards enhanced human rights
and equity to say there is a global trend
towards these goals would indeed be
erroneous.
7. N 0 undue legitimacy should be granted
to corporations and international financ-
ing agencies. The sovereignty of both
people and the nation-state must not be
compromised for anything but the basic
values and goalsof humankind. It is
necessary to give a serious critique of the
privatisation of the water and power
sectors and the resulting marginalisation of
local people and corporate domination
over natural resource-based communities.
8. T he issues above are those raised by the
peoples' movements whose role and
perspectives should be given their due
place. N ot just with stories of eviction,
repression and confrontation, but with
their ideologies, strategies, and vision.
9. Over and above all this, I recognise and
share the Commission's achievement of
local to global consultation and, more so,
a humane, well-intentioned, open and
frank dialogue under an able leadership,
which needs to be kept alive beyond the
short life of this forum. To endorse the
process and many of our findings and
recommendations, I have signed the
Report. To reject the underlying assump-
tions of a development model which has
palpably failed and to caution against the
massive gulf between a statement of good
intent and a change in practice by
entrenched vested interests I have asked
for this note to be attached.
W hatever is missing or could not be ad-
dressed in the Report should form an agenda
for further dialogue and research; but also
for struggles for justice with people at the
forefront, people more empowered by this
report and otherwise to say N 0 to the
perverted development vision, process and
projects.
Med ha Patkar
322
Dams and Development: A New Framework for Decision-Making
The index does not cover the Executive Summary (pages xxvi-xxxvii) or the glossary (A nnex II). Page numbers given in
italics indicate illustrations, figures or tables.
A
activist groups 18-20
A DB 41, 45, 47, 48, 54, 57, 62, 114, 171,
188
African Development Bank (AfDB) 41,
54, 56, 62, 171, 188
A gno River basin 111
agriculture 6, 12, 42-6, 100-101, 137-48
A kosombo dam 81, 107, 108, 110, 115,
116, 118
alternatives to dams 23, 135-64, 178-80,
178, 221-24, 262, 263, 266-70
A mu Darya River 88
A ndra Pradesh II & III 128
aquatic ecosystems 77-83, 90, 234-39
A ral Sea 88
Argentina 106, 117, 144, 305
A run III dam 19, 172
A sian Development Bank see A DB
A slantas dam 31, 42, 44, 49, 56-7, 63, 82,
85, 116
alternatives considered 178
cost recovery 48, 48
costs and benefits 100, 121,121,
124, 125
cropping pattern and yields 45-6
cultural heritage 117
displaced communities 105, 106,
107
financial assistance 173
irrigation 44, 46, 116, 141,190
Asmal,Kaderw7/, 28, 394
A surini people 107, 122
Aswan High dam 13, 59, 107
cultural heritage 117, 117
displacement 103
flood management 59
health 118
loss in fish production 85
sediment management 81
A ustralia 11, 75, 79, 82, 83, 88, 139, 145,
159, 231,296,304
Austria 91, 177
B
Bakolori dam 18, 35, 112
Bakun project 111
Balbina dam 111
Bangladesh 13, 111, 146, 160
banks 188-90,315-16
Bargi dam 106, 128
baseline assessments
ecosystems 293-94
social conditions 296-97
Batang A i dam 107
Bayano dam 111
benefit-sharing mechanisms 243, 253-54,
300-301
benefits see costs and benefits
Benin 81, 115
Bhagani Tildeh river catchment 144
Bhumibol dam 107
bilateral financing agencies 187-90, 315
bilharzia 118
biodiversity
in aquatic ecosystems 77-83
in terrestrial ecosystems 75-7
Convention 234, 235, 238
biom ass systems 154
birds 78, 83, 87
black stilts 78
blackfly 80
Blackmore, Donald ix, 395
Botswana 84
Brazil 11, 14, 84, 101, 101, 107, 108, 110,
111, 112, 127, 141, 144, 231
see a/so Tucurui dam
Earth Summit (1992) 234
financial assistance 172
participation in decision-making 177
Brazil Ceara Water Resources 128
British Columbia 53
Buffalo C reek dam 64
bulk water supply 56-7
Burnett River 296
Burundi 104
c
Cambodia 145, 145
Cameroon 84, 85, 231, 239
Canada 4, 11, 14, 31, 59, 112, 128, 226
see also G rand C oulee dam
canal lining 140
capital costs 39-41, 48,49, 70
Carino, Joji ix, 395
C ase Studies ix, 30, 31, 38, 40-42, 44-45
53-54, 350-53
see also names of specific dams
Cerro de Orro dam 107
C eyhan Basin 31, 173
Chad 112
C hagga people 174
Chakma people 111
C hallawa G orge dam 113
Chandil dam 18
C hash ma project 67
Chico River 19
Chikugo River 59
Chile 19, 111, 143
China 4, 7-9, 10, 13, 14, 17, 21, 62, 66,
100, 107, 113, 180
see a/so Three G orges dam
benefit-sharing 127, 128
corruption 187
Index
cultural heritage 118
displacement of communities 104,
107, 108, 109, 110
electricity 152
environmental conditions 190
financial assistance 189
flood management 160, 161
health issues 118
irrigation 140, 141, 144, 144, 146
reparations 128
water supply 158
Chinantec Indians 107
Chixoy dam 18, 106
Churchill Rivers project 111
civil society organisations 205, 314-16
climate change 7-8, 22, 53, 60, 64, 69, 74,
75-7, 149, 223
Colombia 105, 127, 142, 172
Colorado River ii, 78-9, 92, 125, 143, 145
Columbia Basin project 44, 45, 47, 47,
49,59,62, 122, 128
Columbia River 80, 82, 88-9, 175, 231
Columbia Treaty (1968) 175
Colville tribe 106, 128, 190
command area 43, 43, 70
compensation 105, 106, 107, 114, 124,
230, 238, 241, 242
see also reparations
compliance 185-90, 190, 204, 244-50
compliance plans 244, 301
construction costs 39-40
construction phase 99-100
contracts 242-43, 298-300
Convention Concerning the Protection &
Integration of IndigenousSi Other
Tribal & Semi-Tribal Populations in
Independent Countries! 1959) 23-4
corruption 186-87, 249
cost
overruns 39-42, 54, 68
recovery 38, 48-9, 56, 62
cost-benefit analysis(CBA) 46, 180-82, 186
Costa Rica 172
costs and benefits 37, 21, 120-29
see also cost-benefit analysis
country studies 30, 350, 351
cropping intensity 43, 45, 70
cropping patterns 45
Cross-check Survey ix, 28, 30, 31, 42,
43, 44, 50, 53, 62, 64, 353-56
cultivation techniques 141
cultural heritage 116-18, 285
D
Daguangba M ultipurpose project 128
dam safety 63-5, 186, 272
dam-building countries9, 11
Damodar Valley Corporation 60
dams
debate 2-3, 17-21
existing 225-33, 291-93
in the pipeline 276-77
multi-purpose 39, 44, 62-3, 68
opposition to 18-21
Danjiangkou project 108
Danube River 177
decision -making 169-75, 199, 202, 205,
206, 208-11, 263,263, 280-81
participation in 176-77, 177, 204,
215, 217, 219, 222
decommissioning 10-11, 92, 184-85, 232-33
demand-side management 148, 149, 150-
51, 157-60, 180
Denmark 157
Dhom dam 106
Diama dam 119
diseases 115, 118-19
displacement of communities 16-17, 102-
112,207,240
see also resettlement
dispute resolution 307
distributional analysis 288
Dongting Lake 161
drainage 139, 161
E
Earth Summit (1992) 234
Echo Park dam 19
economic growth 4-5
economic internal rate of return see EIRR
economic profitability
hydropower dams 54-6
irrigation dams 47-8
water supply dams 58
ecosystem enhancement 86-7, 231
ecosystems
baseline surveys 293-94
impacts 10, 15-16,16,21-2,73-93,
234-39
Egypt 13, 59, 66, 107, 116-18, 145
EIRR
G hazi-Barotha project 291
irrigation dams 46, 47, 48
Kariba dam 55
multi-purpose projects 62
water supply dams 58
electricity 14, 101, 101, 116, 121, 128,
148-56, 150
see also hydropower
Embera people 107, 111
employment 101-102, 115
Endangered Species A ct (1974) 19
energy resources 148-56, 153-54
entitlements 240-43
environmental flow assessments (E FA )
294-95
environmental flow releases (EFR) 238-39
environmental impact assessments (El A )
19, 89, 177, 182-83, 183, 187, 236,
241, 282-85
environmental impacts 21-2, 25, 223-24,
289,289, 291-92
see also ecosystems impacts
Epupa dam 19, 117
equity 125-29, 204, 205
Ertan project 127
European Union 15
European Wind Energy A ssociation 154
evaluation studies 47, 54, 184, 226-27,
274, 312
existing dams see dams
export credit agencies (EC A ) 188, 246,
312, 316
F
financial agencies 188-90, 315-16
financial internal rate of return seeFIRR
financial profitability
hydropower dams 54-6
irrigation dams 46-8
water supply dams 58
findingssee W CD findings
Finland 91
Finnish International Development
Agency (FINN IDA) 174
FIRR
irrigation dams 46
water supply dams 58
Fisching Project 177
fish 16, 78, 79, 80, 81, 82-3, 84-6, 119,
231, 237, 295-96,296
fisheries 84-6, 90, 113, 295-96
flood control
benefits 58-59
Iimitations60, 83
dams 58-62
flood management 14-15, 60-62, 68, 84,
160-63, 161, 162, 239
floodplain ecosystems 83-4, 90, 145, 145,
147, 237-38
Food and A griculture Organisation
(FAO) 140, 316
foreign assistance 170-73, 173, 174
Forestry Stewardship Council (FSC) 246
forests 75, 76, 83, 161
France 4, 10, 81, 91, 92, 231
free, prior & informed consent 218-219,
280-82
Freudenau dam 177
Friesach project 177
Funtua dam 104
G
G ansu province 144, 144
Gariepdam 44, 115, 121, 122, 124
Gavaio da M ontanha people 107, 122
gender disparities 114, 116, 216
Germany 4, 14, 154, 158
Gezira-M anagil irrigation schemes 140
Ghana 81, 107, 108, 110, 115, 146
400
Dams and Development: A New Framework for Decision-Making
InHpY
G hazi-Barotha project 128, 291
Gland Workshop iii, vii, 18, 21, 27, 28
Glen Canyon dam 78-9, 79
global warming see climate change
G lomma and Laagen Basin 31, 40, 50, 53,
59, 66, 103, 179
alternatives considered 178
costs and benefits 121, 121, 124,
125
fish passes 82
political decision 170
services 121, 122
Goldemberg, Jose/x, 395
governance 22-3, 205,209
G rand C oulee dam 31, 44, 49, 50, 51, 53,
66, 100
alternatives considered 178
cost recovery 62
costs and benefits47, 121, 122, 123-
24, 124, 125, 190
cultural heritage 117
displacement of communities 105,
106, 113, 115
ecosystems 80, 81, 82, 85, 86, 88-9
employment 99, 102
flood control 59
performance 55, 55
political decision 170
reparations 128
Great Fish River 80
greenhouse gases (GHG) 74, 75-7, 76, 77,
90, 92, 122, 149, 223, 287-88
gross value of production 45-6
groundwater abstraction 146
groundwater pumping 139, 139
G uatemala 18, 106
GwembeTonga people 18, 106, 107, 114,
119
GwembeTonga Rehabilitation and
Development Programme 128
H
H adejia River 113
H ainburg dam 177
H anoi 14
Harvey Basin Restoration Trust 75
health issues 100, 115, 118-20, 236, 241,
284
H ells Canyon dam 82
Helsinki Rules(1996) 252, 254
H enderson, Judy wV/, 395
H endrik Verwoerd dam 170
H illsborough dam 86
H imba people 117
HIV/AIDS 100, 115, 119
HoChi Minh City 14
Hoa Binh 107
H ouay H o dam 108
human rights see rights
H ungary 185
Hydro-Quebec 128
hydropower 12, 14, 101, 102
hydropower dams 49-56, 62, 68
H ydropower and E nvironment 91
I
Ibaloy people 111
ICOLD World Register of Dams314
Iguacu River 177
llisu dam 19, 188
impact assessments 241, 282-85, 306-307
see a/so environmental impact
assessments
environmental flow assessments
294-95
impoverishment risk analysis 241, 297-98
Inanda dam 117
India 4, 7, 9, 10, 10, 17, 19, 21, 41, 58,
66, 104, 172
see also Sardar Sarovar project
costs and benefits 123-24, 127
cultural heritage 117, 118
displacement of communities 18,
106, 107, 108, 110, 115
ecosystems 75
electricity 152
environmental conditions 190
financial assistance 171-72, 188
flood control 60
health issues 118
irrigation 13, 44, 100, 140, 141, 144,
145, 146
reparations 128
water supply 157, 158
indigenous peoples 19, 38, 105, 106,
110-12,207, 216, 218-20, 256
Indonesia 4, 105, 108, 113
IndusBasin Irrigation System (IBIS) 44,
48-9, 67, 122, 122, 140
IndusRiver 59, 90
industrial usage of water 13-14
Innu people 112
Inspection Panel 19
Integrity Pacts 249, 305
Inter-A merican Development Bank 41,
171, 172, 188, 216
Intergovernmental Panel on Climate
Change(IPCC) 7
International Association for Impact
A ssessment 314
International Bank for Reconstruction &
Development (IBRD) 170
see a/so World Bank
International Commission on Irrigation
& Drainage (ICID) 27, 173, 314
International Commission on Large Dams
(ICOLD) 11, 27, 65, 73, 172, 173,
314, 370
International Court of Justice 254
International Covenant on Economic,
Social & Cultural Rights(1966) 24
International Energy Agency 91, 314
International EnergyA ssociation (lEA) 73
International Finance Corporation (IFC)
188, 230
International Hydropower A ssociation
(IHA) 73, 173, 314
International Labour Organisation
(Convention 169) 216, 219
International Organisation for Standardi-
sation (ISO) 246, 314, 315, 318
International R ivers N etwork (IRN ) 27, 41
International Water M anagement
Institute 68
investment 11, 13, 249-50
Iran 10
Ireland 295
irrigated area 43, 43, 44-5
irrigation 12-13, 13, 100-101, 137-48
dams 42-9, 62, 68
systems 138-43
ISO 14001 management system standard
257, 315, 318
Israel 141
Ita dam 107, 110
Itaipu dam 127
lUCN see World Conservation Union
J
Jain, Lakshmi Chand viii, 395
Jama'are River 113
Japan 9, 10, 59, 60, 127, 157, 158, 231
Japanese encephalitis 118
Jordan 141
K
Kainji dam 85, 109
Kano River project 113
Kao Laem dam 105, 107
Kaptai dam 111
Kariba dam 18, 31, 40, 42, 50, 52, 53, 55
access to electricity 128
alternatives considered 178
costs and benefits 121, 121, 124, 125
displacement of communities 103,
106, 115, 190
ecosystems 75, 85, 86
employment 99, 102
financial assistance 173
health 118, 118-19
political decision 170
reparations 128
Kedung Ombo dam 108
Kelly Barnes dam 64
Kenya 84, 104, 107, 146
The Report of the World Commission on Dams
401
Index
Kiambere Reservoir 104, 107
Kolyma River 113
Korea 237
Kotri barrage 88, 112
Kpong dam 110
Kuna people 107, 111
Kyoto Protocol 287
L
Lake Chad 84
Lake Roosevelt 122
Laos 20, 75, 108, 113, 145, 183
large dams
functions 12, 12
regional distribution 8
types 11
legislation 127-28, 185, 186-87, 189, 200,
216, 226, 242-43, 249, 255, 298-301
Lesotho 231
Lesotho H ighlands Water Project 19-20,
119, 187
licensing procedures 185, 226, 232-33,
272, 274
life-cycle assessment 286-87
Lindahl, Goran ix, 395
Lingjintan project 113, 190
Liu-Yan-Ba project 107
Logone-Chari system 84
Lubuge project 127
M
M adden dam 117
M aguga project 119
M ahaweli Development Programme 105,
114, 115, 319
M aheshwar dam 188
malaria 118, 119
Malaysia 107, 111, 141, 162, 162
Mali 83,84, 112
Man an tali dam 84, 112, 119
M anibeli Declaration 26
maps31
Marshall Plan 170
M atsubara dam 59
M aya A chi people 18, 106
M azatec people 18, 106
M ekong River 84, 145
mercury levels 118, 119
Mexico 18, 49, 106, 109, 111, 145
micro-irrigation systems 141
migration 82-3
M iguel A leman dam 18, 106
M ississippi River 160
M issouri River 111
mitigation measures 82, 90, 91, 93, 241-43
see also compensation; resettlement
mitigation, resettlement and development
action plan (MRDAP) 298-300
M oh ale dam 231
M oore, Deborah /, 395
M orocco 66, 145
M orse Report (1992) 26
M ozambique 86
M ubuku project 109
M uda Irrigation Scheme 141
multi-criteria analysis 223, 224, 236, 285-
86
multi-purpose dams see dams
multilateral financing agencies 187-90, 315
M unilateral Investment G uarantee
Agency(MIGA) 230
M un River 84
M ur River 177
M urray Darling Basin 88, 231
M urray River ii, 79, 83, 140
N
N am N gum River 59-60, 61, 256
NamTheun II 20, 75
Namibia 19, 117
N angbeto dam 107, 115
N armada River 128
N armada Sagar dam 117
N armada Water Disputes Tribunal 104
N ational Environmental Protection A ct
(1969) 19
natural vegetation 139, 158-59
needs assessment 222, 262, 263, 264-65
negotiated outcomes 208-211, 208
negotiations 218, 219, 280-81
Nepal 13, 19,53, 172,256,317
N etherlands 160
N ew Zealand 78
N iger 112
Niger River 83, 84, 85
N igeria 18, 58, 84, 104, 109, 112, 113, 140
Nile Delta 81, 85, 145
N lie River ii, 59
non-dam options see alternatives to dams
NO RAD 174,183
N orway 11, 31, 91, 178, 185, 190, 237
see a/so G I om ma and Laagen Basin
nuclear power 153
N ya H eun people 108
0
OSiM costs see operational Si mainte-
nance costs
OECD Convention on Combating
Bribery of Foreign Public Officials in
International Business Transactions
(1997) 187, 249
OECD countries4, 30
Ogallala aquifer 146
Okavango Delta 84
Ontario Hydro Study 65
operation issues 183-84
operational & maintenance (O&M ) costs
48-9, 48, 54, 62
opposition to dams see dams
options for energy Si water needssee
alternatives to dams
Orange River 44, 80, 81, 88, 125, 170, 178
Development Project 102, 122
Pilot Study 80
0 'Shaugnessy dam 18
P
Pak M un dam 19, 31, 40, 51, 55, 113, 115
alternatives considered 178
costs and benefits 55, 121, 124, 125
cultural heritage 117
displacement of communities 104
ecosystems 82, 84, 85
environmental impact assessment
183, 190
financial assistance 173
Pakistan 7, 13, 31, 67, 113, 122, 128, 140,
291
see also IndusBasin; Tarbela dam
financial assistance 173
irrigation 141, 145, 146
Panama 107, 111, 117
Panama Canal 102
Pangani Falls Redevelopment Project 174
Pangue project 111
Papaloapan River Commission 18, 106
Paraguay 106, 144
Parakana people 106, 107, 122,
participation in decision-making see
decision-making
Patkar, M edha viii, 396
Pecos valley 145
P eh uenches people 111
performance 21, 38, 45
Columbia Basin project 47
evaluations 184
findings 68-9
flood control dams 58-62
hydropower dams 49-56
improvement 138-40, 227-28
multi-purpose dams 62-3
water supply dams 56-8
performance bonds 247-48, 301, 303-304,
304
Philippines 19, 58, 101, 110-11, 188
plankton 81
Poland 61-2
political decision-making 169-70, 170
Pollan dam 295
pollution 7
Pongolapoort dam 83, 84, 85
population 3, 17, 17
Porto Primavera dam 84
Position Paper on dams and the E nvironment
(1997) 27
private sector 205, 207, 314-15
project
benefits see benefit-sharing mecha-
nisms
402
Dams and Development: A New Framework for Decision-Making
InHpY
implementation 262, 272-73
operation 263, 274-75
preparation 262, 270-71
project-level impact assessments 283-85
public acceptance 177, 215-20
R
rain-fed agriculture 143-45, 144
rainwater harvesting 158, 158
Rajasthan 144
Raico dam 19, 111
Ramsar Convention on Wetlands 86, 234,
235, 238
recycling of water 145-46, 159
Regional Consultations ix, 28, 32, 98,
117, 357
regulationssee legislation
reparations 128-29, 133, 229, 230-31
resettlement 17, 20, 22, 103, 105, 106,
107-110, 128, 241-43, 298-300
review panels(IRP) 302-303
RhineRiver 160
Rhone River 81, 160
Rift Valley fever 118, 119
rights 19, 20, 22, 24, 200-202, 203, 203,
204, 206, 256
rights and risks approach 202, 206-210,
215, 216, 240, 241
Rio-l-10 process 313, 316
Rio dejaneiro 234
Rio Declaration on Environment and
Development (1992) 24, 200, 201,
391-393
Rio G rande project 127
Rio principles 201-203, 207
risk
analysis 241, 297-98
assessments 290-91, 291
risks 26, 186,207-208,207,237
river fragmentation 87, 88-9
River Severn 64
rivers see a/so aquatic ecosystems
flow regimes 78-81, 81
restoration 10, 234-36
shared 173-75, 174, 251-56, 306-307
transformation by dams 15-16, 15
R ole of D ams for I rrigation, D rainage and
Flood Control {2000) 27
rural electrification 154-55
Russia 11, 14
Ruzizi project 104
Rwanda 104
s
safety see dam safety
Sahel 83
salinity 66-8, 69, 139-40, 139, 159
salmon 78, 81,82, 85, 89, 113, 295
S al to C ai xas proj ect 1 77
San Roquedam 111, 188
Sao Paulo 34, 101,101
Sardar Sarovar project 19, 26, 104, 105,
108, 114, 115, 118, 172
Saudi A rabia 146
schistosomiasis 118, 119
Scudder, T hayer viii, 396
sediment management 81-2, 293
sedimentation 10, 16, 44, 62, 65-6, 65, 69,
75, 81, 138-39, 228
Senegal 84, 112, 145, 231, 239
Senegal River 84, 112, 116, 127
shared rivers 173-75, 174, 251-56, 306-
307
shared values 199,199,202, 206
Shepparton Irrigation Region 139
Shimouke dam 59
Shuikou project 127
S/7encec(R/Vers(1996) 27
Singkarak project 113
Sirindhorn dam 107
Slovakia 179
Sobradinho reservoir 112
social conditions, baseline assessments
296-97
social impacts 16-17, 22, 25, 97-130, 289-
90,289, 291-92
socio-economic impacts 99-102, 112-14,
182, 223-24, 228-31, 241
Sokoto River 112
solar photovoltaics(PV) 154
solar thermal systems 154
South Africa 11, 20, 53, 88, 115
see also Gariep dam; Orange River
Development Project
access to electricity 128
cultural heritage 117
ecosystems 82, 83, 84, 85, 87
water supply 158-59
South African National Water Act 231,
239, 253
South Korea 10
Spain 9, 11, 15, 185
Spokane tribe 106
Sri Lanka 51, 105, 114, 115, 145, 317
Sri Sailam project 106, 107
stakeholder analysis 279-80
stakeholders forum 217-18, 279-80, 286
statistics 368-82
Steiner, A chim x, 396
Sterling Forest 159
strategic impact assessment 282-83
submissions 29, 32, 211, 357-58
Sudan 84, 112, 118, 118, 140
Sudd 84
Sulawesi 105
supply-side options
energy 151-54
water and irrigation 143-48
water supply 158-59
surface irrigation 46, 141, 228
Suriname305
Sweden 91, 237
Swedish International Development
Agency (SIDA) 174
Switzerland 91
Syr Darya River 88
T
Tana River 84, 104
tank systems 144-45
Tanzania 172, 174
Tarbela dam 31, 42, 44, 46, 50, 51, 52, 53,
56-7, 99
alternatives considered 178
costs and benefits 121, 122, 123,
124, 125
displacement of communities 105,
106, 107, 112, 128, 190
ecosystems 82, 88
financial assistance 173
flood management 59
gender disparities 114-15, 115
sedimentation 66
tenders 270
Ten ugh at reservoir 60
terrestrial ecosystems 75, 75
Teton dam 64
Thailand 19, 31, 105, 107, 108, 142, 145,
158, 183, 317
see also Pak M un dam
Thematic Reviews 28, 30, 32, 33, 356-57
Theun H inboun project 113, 183
Three Gorges dams 19, 104, 118, 187,
188, 189
Tiga dam 113
Tocantins Basin 173
Togo 81, 107, 115
Tong River 237
Tonga people see Gwem be Tonga people
Transparency International 187, 315
Trinidad 86
Trushuli -Devi ghat hydropower station 53,
256
trust funds 247-48, 304-305
Tucurui dam 31, 42, 50, 53, 102
alternatives considered 178
costs and benefits 121, 121, 122,
123, 124, 125
displaced communities 105, 106, 107
ecosystems 75, 77, 82, 85-6, 86
financial assistance 173
financial performance 55, 56
health issues 119, 119, 122
and legislation 127, 190
Turkey 10, 19, 31, 44, 45-6, 48, 117, 131,
173, 188
see also A slantas dam
Turkmenistan 66
The Report of the World Commission on Dams
403
Index
U
Uganda 109, 157-58
UN Convention on Biological Diversity
234, 235, 238
UN Convention on Law of N on-N aviga-
ble U se of International Watercours-
es 175, 252, 254, 256, 306, 307
UN Declaration of Human Rights(1947)
200, 202, 387-90
UN Declaration on the Right to Develop-
ment (1986) 24, 200-201, 202, 383-86
UN Draft Declaration on theRightsof
IndigenousPeople 216
UN M illennium Report 199, 209
U N DP H uman Development Report
(2000) 203,203
UNDP World Energy Assessment 150-51
United Kingdom 158, 159, 317
United Nations 140, 316
U nited N ations C harter ( 1945) 23, 199
U nited N ations C onference on the
Human Environment (1972) 182,
201
U nited N ations Development Programme
316
United N ations Educational, Scientific &
Cultural Organisation 316
United N ations Environment Programme
316
U nited States 4, 9, 10, 13, 14, 15, 21, 31,
61, 111, 169, 170, 185, 226
see also Grand Coulee dam
corruption 187
ecosystems 91, 93, 231
flood management 160
irrigation 140, 143, 146
water policy 237
water supply 159
United States A gen cy for International
Development (USA ID) 173
United States Bureau of Reclamation 173
Universal Declaration on Human Rights
(1948) 23, 387-90
U pper Krishna project 118
U pper Sinu River 105
urbanisation 4
Urra 1 dam 105, 113
V
Vaal River 88
values see shared values
Van der Kloof dam 53, 115, 121, 122, 124
vegetation 75, 76, 77, 80, 83, 94, 139,
158-59
Veltrop,Jan x, 396
Venezuela 144
Victoria dam 51
Vietnam 14, 62, 107, 145, 185
Volta River 81, 85, 110
w
W aimiri-A troari people 111
Waitaki River 78
water
appropriation methods 143-45
quality 7, 88, 139-40, 158
rights 143
supply 156-60
supply dams 56-8
tariffs 58, 142, 147, 157
water-stressed countries 6, 7, 7
waterlogging 66-8
WCD
establishment 25-8
mandate 28, 195
members viii, ix, x, 394-6
policy framework 202, 203-206
process 29
Secretariat 397-8
WCD Forum 27,29,31
WCD Global Review xxviii-xxx
WCD Knowledge Base 29, 38, 56, 58, 68-
9, 359-67
priorities for stren gthening 317
WCD findings
compliance 190-91
decision-making 188-89
ecosystems impacts 92-3
needs 163-64
planning 191-92
socio-economic impacts 129-30
wetlands 83-4, 86-7, 145, 145
Wetlandslnternational 86-7
wind power 153-54
Working for Water programme 158-59
World Bank 19, 20, 27, 40, 41, 42, 45, 47,
48, 49, 54, 58, 62, 67, 171-72, 182,
230
OperationsEvaluation Division
Report (OED)(1996) 26,27,41,46,
56, 114
policies 188
World Commission on Damssee W CD
X
Xiaolangdi dam 109-110
Y
Yacyreta project 106
Yakutia 113
Yangtze River 62, 104
Yantan project 127
Yellow River ii, 107
Yemen 145
yields 12, 45-6
z
Zaire 84, 104
Zambezi River 85
Zambia 31, 107, 114, 121, 128,145
see also Kariba dam
Zimapan resettlement 109
Zimbabwe31, 91, 107, 115, 121, 237
see also Kariba dam
access to electricity 127-28
404
Dams and Development: A New Framework for Decision-Making
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